An indirect tax (such as sales tax, per unit tax, value added tax (VAT), or goods and services tax (GST ), excise, consumption tax, tariff) is a tax collected by an intermediary (such as a retail store) from the person who bears the ultimate economic burden of the tax (such as the consumer).
Indirect taxes are not directly paid by the assesses to the government authorities. These are levied on goods and services and collected by intermediaries (those who sell goods or offer services)
As a significant step towards the reform of indirect taxation in India, the Central Government has introduced the Goods and Service Tax (GST). GST is a comprehensive indirect tax on the manufacture, sale and consumption of goods and services throughout India and will subsume many indirect taxes levied by the Central and State Governments. GST will be implemented through Central GST (CGST), Integrated GST (IGST) and State GST (SGST).
Four laws (IGST, CGST, UTGST & GST (Compensation to the States), Act) have received President assent. All the States & UT expected to pass State GST Act, by end of May 2017. GST law is expected to take effect from July 1, 2017.
GST is the biggest tax-related reform in the country bringing uniformity in the taxation structure and eliminating the cascading of taxes that was levied in the past. The GST Council meets from time to time to revise the GST rates for various products.
GST stands for Goods and Services Tax. It is classified into three types:
CGST –Central GST
SGST –State GST
IGST –Integrated GST
GST Tax Rates on some common items:
Rates | Products |
5% | Household necessities such as edible oil, sugar, spices, tea, and coffee (except instant) are included. Coal ,Mishti/Mithai (Indian Sweets) and Life-saving drugs are also covered under this GST slab. |
12% | This includes computers and processed food |
18% | Hair oil, toothpaste and soaps, capital goods and industrial intermediaries are covered in this slab |
28% | Luxury items such as small cars, consumer durables like AC and Refrigerators, premium cars, cigarettes and aerated drinks , High-end motorcycles are included here. |
Custom duties are levied on nearly all goods that are imported into the nation. While export duties are levied on goods as specified by the Second Schedule, import duties are not levied on certain items like fertilizers, food grains, lifesaving drugs etc. Custom duty can be classified into the following types:
Nirmala Sitharaman, the Minister of State (Independent Charge) Commerce and Industry India have introduced the new five Year Foreign Trade Policy, 2015-2020 and 2015-2021, and soon the 2021-2026 policy which will provide a framework for increasing exports of goods and services as well as generation of employment and increasing value addition in the country. The modus operandi of the Government is to support both the Manufacturing and Services Sectors with special emphasis on improving The Ease of Doing Business keeping in view the “Make in India” vision of our Prime Minister Mr. Narendra Modi.
Directorate General of Foreign Trade (DGFT) deals with case laws that are related to Foreign Trade Policy in India.
Foreign Exchange Management Act is the process of limiting a company’s exposure to foreign currency fluctuations. In most cases, this is done by companies that engage in foreign trade. Foreign exchange, or forex, is the conversion of one country’s currency into another. In other words, a currency’s value can be pegged to another country’s currency, such as the U.S. dollar, or even to a basket of currencies. 1 A country’s currency value may also be set by the country’s government.
The Foreign Exchange Management Act, 1999 (FEMA) is an Act of the Parliament of India “to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India”.
FEMA (Foreign Exchange Management Act) is appropriate to the entire of India. And pertinent to the offices and workplaces situated outside India. The administrative center of FEMA is arranged in New Delhi. It is known as Enforcement Directorate.
Foreign Exchange laws / Foreign Exchange Management Act are /is one of the most stringent law of the country and are /is subject to changes at rapid pace. As an organization, it is necessary to make sure that all your transactions related to foreign exchanges are in compliance with law and if not, necessary precautionary measures shall be undertaken to rectify the same.
Please contact the best lawyers in Delhi for all transactions, inbound & outbound, undertaken during the period under scrutiny from the point of compliance with foreign exchange laws and provides required FEMA Advisory including remedial measures, in case of any deficiency.
Our FEMA Attorneys and Solicitor’s Legal services include Appeals and representation before the Court FEMA and ED in the case of gross violation of the provisions of the FEMA and in terms of money laundering.
Plus:
Surcharge: 10% of tax where total income exceeds Rs. 50 lakh
15% of tax where total income exceeds Rs. 1 crore
Education cess: 3% of tax plus surcharge
A domestic company is taxable at 30%. However, tax rate is 25% if turnover or gross receipt of the company does not exceed Rs. 50 crore.
A foreign company is taxable at 40%
Net Income for Individual/HUF/ AOP/ BOI/ Artificial Judicial Person exceeds 50 Lacs But doesn’t exceeds 1 Cr. = Rate of Surcharge @ 10%
Net Income for Individual/HUF/ AOP/ BOI/ Artificial Judicial Person exceeds 1 Cr. But doesn’t exceeds 2 Cr. = Rate of Surcharge @ 15%
Net Income for Individual/HUF/ AOP/ BOI/ Artificial Judicial Person exceeds 2 Cr. But doesn’t exceeds 5 Cr. = Rate of Surcharge @ 25%
Net Income for Individual/HUF/ AOP/ BOI/ Artificial Judicial Person exceeds 5 Cr. = Rate of Surcharge @ 37%
Net Income exceeds 1 Cr. = Rate of Surcharge @ 12%
Net Income exceeds 1 Cr. But doesn’t exceeds 10 Cr. = Rate of Surcharge @ 7%
Net Income exceeds 10 Cr. = Rate of Surcharge @ 12%
Net Income exceeds 1 Cr. But doesn’t exceeds 10 Cr. = Rate of Surcharge @ 2%
Net Income exceeds 10 Cr. = Rate of Surcharge @ 5%
Education cess: 4% of tax plus surcharge
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