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.