Taxes which are paid directly by individuals and organisations to the government of India come under Direct Tax. like Personal Income Tax, Capital Gains Tax, Securities Transaction Tax, Perquisite Tax, Corporate Income Tax, Marginal Tax, Rate Tax on Agricultural.
Service Tax which is incurred indirectly by the government of India are provided by firms and servicing companies in lieu of monetary benefit. Service tax is charged at the rate of 15% currently.
Goods and Services Tax (GST) is an indirect tax (or consumption tax) levied in India on the supply of goods and services. It is levied at every step in the production process.
Besides agricultural income, Income Tax is mainly collected by the central government. It is imposed on individuals or entities (taxpayers) that varies with respective income or profits (taxable income).
This tax is levied on goods imported in India as well as exported from India.
Central Excise duty is an indirect tax levied on those goods which are manufactured in India and are meant for home consumption. The term "excisable goods" means the goods which are specified in the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 , as being subject to a duty of excise and includes salt.
Company whether Indian or foreign is liable to taxation, under the Income Tax Act,1961. Corporation tax is a tax which is levied on the incomes of registered companies and corporations.
An Indian company which has been formed and registered under the Companies Act,1956 or any other company which, in respect of its income liable to tax, under the Income Tax Act, would have to pay the tax.
A company whose control and management are situated outside India, and which has not made the prescribed arrangements for declaration and payment of dividends within India.
Although the taxes are collected by the central government, Electricity Tax may vary from state to state.
Value Added Tax (VAT)
One of the important components of tax reforms initiated since liberalization is the introduction of Value Added Tax (VAT). The VAT is a multi-point destination-based system of taxation, with tax being levied on value addition at each stage of the transaction in the production/ distribution chain.