What is an Indirect Tax?
An indirect tax such as Excise, Customs, Sales Tax, Service Tax, Value Added Tax (VAT), etc is a tax collected by an intermediary (such as service provider) from the person who bears the ultimate economic burden of the tax (such as the consumer/client). The intermediary later files a tax return and forwards the tax proceeds to government with the return. In this sense, the term indirect tax is contrasted with a direct tax which is collected directly by government from the persons on which it is imposed. A direct tax is one that cannot be shifted by the taxpayer to someone else, whereas an indirect tax can be.
Indirect Taxes in India is administered and collected by the Central Board of Excise and Custom (CBEC) which operates under the Ministry of Finance, Department of Revenue.
What are the types of Indirect Tax applicable in India?
The various types of indirect taxes applicable in India as on date are:
- Service Tax
- Value Added Tax
- Central Excise Duty
- Customs Duty
Under all the laws applicable for indirect taxes, certain registration are required to be obtained and periodical returns are required to be filed by the assessee with respect to the indirect taxes collected from third parties failing which penalties may be levied by the authorities.
How we may help you?
We have a team of qualified and experienced tax professionals to assist our clients in relation to the following services:
- Registration under various indirect taxes
- Filling of Indirect Tax returns
- Regulatory Compliances
- Assessment Procedures
- Tax Planning