ALL TAXES INFORMATION

Tax : Tax is a financial term, which is levied on a tax payer by government Authority.

       Taxes are two types –

             1)   Direct Taxes

             2)   Indirect Taxes

       1)    Direct Taxes : It is levied directly on the tax payers who pays amount directly to the concerned govt office.

             Ex : Income tax, Estate Duty, Wealth tax, Gift tax etc.

       2)    Indirect Taxes : It is a tax which is levied indirectly on the tax payer.

             Ex : One soap price includes product cost + tax amount, but the people do not know how much tax they are paying on soap but they are paying tax indirectly.

             Ex :       Service Tax

                    VAT Tax

                    Sales Tax (levied on 3rd party not directly on customer)

                    Stamp duty,

                    Excise Tax

Direct Taxes :

n Income Tax : It is levied on the persons financial income, corporations (or) Business Firms.

n Wealth Tax : It is a tax which is levied on the persons Wealth. like which does not produce money. Ex : Jewellery, Large Mansions etc.

n Estate Duty : It is paid on the expired persons property. (Inheritance tax)

n Corporation Tax : It is levied on Registered Companies and Corporates.

n Gift Tax : It is levied on the gifts which value exceeds Rs. 50,000.

n Banking Cash Transaction Tax : It is levied when one person deposits money (or) with draws from/ to a bank.

Indirect Taxes :

n Sales Tax : A tax is levied on the of goods sales.

n Service Tax : This is levied on services provided in India (except Jammu & Kashmir)

n Excise Tax : It is levied on the production of goods.

n Customs Duty : This is levied on Import and Export of goods.

n Stamp Duty : It is levied on Assets & Properties.

n Land Tax : It is paid to Tahasildar (or) Panchayat Secretaries, Which is levied on Agriculture land).

n Luxury Tax : Which is levied on customers who uses luxury goods.

n VAT (Value Added Tax) : VAT is levied on end customer.

       Ex : To prepare a book we need paper, printing material, labour charges, earlier tax was levied on paper, printing material and book but whenever VAT was introduced, tax is levied on only on Book (Means on end product cost).

             VAT was introduced 1st in Haryana state in 2003. Uttar Pradesh was the last state to introduce VAT.

n GST (Goods and Services Tax) : (Which is not introduced) GST is a value added tax. It will replace all indirect taxes.

n Demand Draft : D.D. is an instrument used for effecting transfer of money. To buy a D.D. from a bank you are required to fill an application form which asks the following information.

             –     Payable at

             –     Name of the receipt

             –     Mode of Payment

n D.D. is a Banker's Cheque, issued by banks.

       Drawer : The maker of bill (Ex. Bank)

       Drawee : The person who pays money

            Payee : The person who receives money.

Cheque :

n Cheque is a negotiable instrument instructing a bank to pay a specific amount from specified bank.

       Cheque has the following information

             –     Date

             –     Signature of the account holder

             –     Specified Amount (Ex : 5,000/-)

             –     Payee Name

                        Note : from April 1st 2012 Cheques D.D.'s valid for only 3 months.

ypes of Cheques :

1)   Crossed Cheques : It can be paid (or) credited to the payee's account. It cannot be paid by Cash counter directly.

2)   Open Cheque/ Uncrossed : It can be paid to the payee at cash counter.

3)   Bearer Cheque : The word 'or bearer' which is on the cheque is not cancelled, that cheque is payable to any person who brings the cheque to bank.

4)   Order Cheque : The word 'bearer' which is on the cheque is cancelled, that is called order cheque such cheque is payable to the person whose name is written on the cheque.

5)   Anti-Dated Cheque : A cheque is mentioned earlier date.

       Ex : Today 12–September, 2013, but the date mentioned on the cheque is 9th September 2013 that is called Anti-Dated Cheque.

6)   Post Dated Cheque :  A cheque which is written future date.

7)   Stale Cheque : Which is not valid.

Credit Rating Agencies approved by SEBI :

n Indian Credit Rating Agencies :

       1)    CIBIL

       2)    CRISIL

       3)    ICRA

       4)    CARE

       5)    BRIPL

       6)    SMERA

       7)    FRIPL

1)   CIBIL : Credit Information Bureau India Ltd. Head Office : Mumbai.

2)   CRISIL : Credit Rating Information services of India Ltd. Head Office : Mumbai

3)   ICRA : Investment Information and Credit Rating Agency of India Ltd. Head Office : New Delhi.

4)   CARE : Credit Analysis and Research Ltd. Head Office : Mumbai.

5)   BRIPL : Brickwork Ratings India (P) Ltd. Head Office : Bangalore.

6)   SMERA : SME Rating Agency of India Ltd. Head Office : Mumbai

7)   FRIPL : Fitch Ratings India Private Ltd. Head Office : Mumbai.

America's Credit Rating Agencies :

1)   Moody's :

2)   Standard and Poor's