INDIRECT TAX >>
TAX ON GOODS AND SERVICES India aims to adopt a comprehensive Goods & Service Tax (' GST ') by 2012 . In the meanwhile , the following indirect taxes apply
EXCISE DUTY Manufacturing units need to pay an excise duty on goods produced in India . The duty varies between products and the unit is required to periodically deposit the duty on removal of products . Furthermore , these units are to maintain detailed stock records and accounts in respect of duty payable on final goods , credit claimed on inputs etc and submit annual returns . Submission dates are linked to level of operations .
CUSTOMS DUTY Movement of goods across borders would need compliance to customs duty regulations . The duty varies between products . The compliance requirement includes determination and deposit of duty prior to clearance of goods by the customs authority .
SERVICE TAX Businesses rendering specified services are liable to a service tax at 10 percent plus education cess on the billable value . They are required to monthly deposit the tax collected .
CENTRAL SALES TAX (' CST ')/ VALUE ADDED TAX (' VAT ') Businesses trading in goods between states are liable to charge CST whereas those trading within the same state are subject to VAT . The rate of VAT / CST varies between products and states . The businesses are required to deposit the tax collected and submit bi-annual / quarterly returns with the sales tax authorities .
Besides , certain states of India levy entry / octroi tax on movement of goods .