Taxation

An individual who does not fulfill the below mentioned conditions in that previous year will be considered as Non Resident:

☛ You have to be in country atleast 182 days in that year.

☛ You have to atleast be in country for 365 days during 4 years preceding that year and atleast 60 days in that year.

Excise Duty is an indirect tax imposed on goods that are manufactured and produced within the country. This is paid by the manufacturer on the finished good when it goes out of the factory. Excise Duty is levied on all goods, except certain goods that are exempted.

Sales Tax is imposed on the finished product which is paid by the consumer. Sales tax is imposed on sale or purchase within the State. Different states levy different levels of sales tax, while there is a Central Sales Tax levied on sale or purchase in the course of interstate trade.

Fair rent is the rent charged for a private property that is fixed and registered by a rent officer. Fair rent is decided on the basis of size, condition and usefulness of the property.

Excise tax is an indirect tax that is imposed on the manufacture, sale or use on certain types of goods and products. Excise taxes are generally imposed on goods such as cigarettes or alcohol, also in the price of an activity such as gambling. Excise taxes may be imposed by both Federal and state authorities.

Service tax is an indirect tax imposed by the government on service providers on certain service transactions, but is actually paid by the customers. Services provided by air-conditioned restaurants and short term accommodation provided by hotels, inns, etc are included in the taxable services.

The major difference between excise tax and service tax is that excise tax is charged on manufactured goods and sales tax is imposed on certain services provided.

Commercial Tax is a tax imposed on the scheduled Commercial goods as indirectly collected by the seller or purchaser against his business transaction which now comprises of Sales Tax, Entertainment, Luxury Tax, Entry Tax and Profession Tax.

Entertainment duty is levied on entertainment places like Cinemas, Amusements, Parks, Variety Programmes Sports etc on following rates.

☛Presently no duty is being collected from Cinemas.

☛Dramas, plays, variety Programmes 10% of the payment for admission.

☛Games and Sports 5% of the payment for admission.

☛Items of amusement other than above 25% of the payment for admission.

Deductions that are made under salary head are Entertainment allowance and Professional tax:

☛ Entertainment Allowance:

Entertainment allowance received is already included in the income of the employee and then a deduction is made only for government employees.

☛ Professional Tax:

Professional Tax is imposed by the government on employment by whatever name called.

The 4 types of provident funds:

☛ Recognized Provident Fund (RPF)

☛ Unrecognized Provident Fund (URPF)

☛ Statutory Provident Fund (SPF)

☛ Public Provident Fund (PPF)

A tax imposed on goods and services that are non-essential or not included in the necessities. Luxury tax is included in the indirect tax and is incurred by those who purchase or use the product.

Form D:

Sale to government is taxable 4% or applicable sales tax rate for sale within the State whichever is lower. This concession on CST is applicable if Form D is issued by the government department which purchases the goods.

Recognized Provident Fund schemes must be approved by The Commissioner of Income Tax and applicable to an organization which employs 20 or more employees.

Transfer of Income means when someone retains the ownership of an asset but makes an agreement to transfer its income but still the income is considered as your income and it will be added to the total income.

Unrecognized Provident Fund are not approved by The Commissioner of Income Tax and is started by employer and employees in an establishment.

Statutory Provident Fund is mainly meant for Government, University, Educational Institutes (affiliated to university) employees.

Fair rent is calculated in place of mortgage interest, other financing costs and depreciation related to certain property, including land, buildings and non movable equipment. It is calculated only once, at the time the facility begins operation.