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Indirect Tax Services
Indirect taxes are taxes levied by the central and state government on spending, consumption, services, rights and privileges, but not on property or income. This includes the customs tariff on the customs tariff, as well as the special tax paid on production and the value-added tax at certain stages of production and distribution of products. All this includes the realization of indirect taxes since they are not directly applicable to the consumer’s income. Considering that indirect taxes are less than the income tax due to the invisibility of the payment, several state agencies tend to increase these taxes to generate higher income. Indirect tax is also a measure of payment in an application and is not rooted in the ability to pay.
Characteristics Of Indirect Taxes
Payment and tax burden
The service provider makes the payment of indirect taxes and transfers it to a final consumer.
Tax liability
Here the seller or service provider makes the payment of indirect taxes that are transferred to the final consumer.
Nature
Initially, indirect taxes used to be regressive. However, now with the arrival of GST, they have become quite progressive.
Investment and savings
Most indirect taxes are largely geared to growth, as they de-motivate the consumer and encourage savings.
Social coverage
The indirect tax has much greater coverage since its charge falls on each of the products or services that they buy.
Payment and tax burden
The service provider makes the payment of indirect taxes and transfers it to a final consumer.
Types of Indirect Taxes
Certicom Group of Chartered Accountants excels in providing unparalleled indirect tax services in Bangalore. Our team of experienced professionals ensures meticulous attention to detail and comprehensive understanding of the complex indirect tax landscape.
Service Tax
Service tax is a type of indirect tax that consumers must pay when using a taxable service provided by various service providers, such as restaurants, hotels, travel agents, cab services, and cable providers. The consumer pays the service charge to the service provider, who then remits the tax to the central government.
Value Added Tax (VAT)
Value Added Tax (VAT) is a flat tax imposed on commodities, similar to a sales tax. However, unlike sales tax where the entire amount is paid by the consumer at the point of sale, VAT is paid in portions by different parties involved in the production and distribution chain.
Excise Duty
Excise duty, or excise tax, is an indirect tax levied on goods produced within a country. It is essentially a tax on the sale of these goods and is now referred to as the Central Value Added Tax (CENVAT). Examples of items subject to excise duty include tires, airline tickets, fuel, and heavy trucks.
Customs Duty
Customs duty, also known as import duty, is an indirect tax imposed on imports and exports. It plays a crucial role in a country’s trade policies by regulating the flow of goods across borders and serving both economic and regulatory functions.
Entertainment Tax
Entertainment tax is levied on various forms of entertainment, including feature films released in theaters, amusement parks, sports activities, commercial exhibitions, and large parties or celebrations.
Goods and Services Tax
GST is a tax on goods and services from production to consumption, divided into three types: SGST, CGST, and IGST. This system streamlines taxation across government levels for a uniform structure.
Stamp Duty
Stamp duty is a tax imposed on the transfer of immovable property within a state and on all legal documents. Levied by the state government, the rates can vary. Historically, a physical revenue stamp was affixed to the document to indicate that stamp duty had been paid.
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