While browsing on the net I found a very interesting piece of Information which I have modified fo ApniTally readers. The tax structure in India is so unorganised ( if I am right ) that you can see the mess. Some times it feels that we are here just to pay the Taxes, nothing else. Rest of the people (Hassan Ali, Politicians etc.) are just enjoying life.
In India if we ask from a person about taxation, here would be the conversation:-
‎1) Qus.: What are you doing?
Ans.: Business.
Tax : PAY PROFESSIONAL TAX
2) Qus.: What are you doing in Business?
Ans.: Selling the Goods.
Tax : PAY SALES TAX
3) Qus.: From where are you getting Goods?
Ans.: From other State/Abroad
Tax : PAY CENTRAL SALES TAX, CUSTOM DUTY & OCTROI
4) Qus.: What are you getting in Selling Goods?
Ans.: Profit.
Tax : PAY INCOME TAX
5) Qus.: How do you distribute profit ?
Ans : By way of dividend
Tax : PAY DIVIDEND DISTRIBUTION TAX
6) Qus.: Where are you Manufacturing the Goods?
Ans.: Factory.
Tax : PAY EXCISE DUTY
8) Qus.: Do you have Staff?
Ans.: Yes
Tax: PAY STAFF PROFESSIONAL TAX
9) Qus.: Doing business in Millions?
Ans.: Yes
Tax : PAY TURNOVER TAX ?
Ans : No
Tax : Then pay Minimum Alternate Tax
10) Qus.: Are you taking out over 25,000 Cash from Bank?
Ans.: Yes, for Salary.
Tax : PAY CASH HANDLING TAX
11) Qus.: Where are you taking your client for Lunch & Dinner?
Ans.: Hotel
Tax : PAY FOOD & ENTERTAINMENT TAX
12) Qus.: Are you going Out of Station for Business?
Ans.: Yes
Tax : PAY FRINGE BENEFIT TAX
13) Qus.: Have you taken or given any Service/s?
Ans.: Yes
Tax : PAY SERVICE TAX
14) Qus.: How come you got such a Big Amount?
Ans.: Gift on birthday.
Tax : PAY GIFT TAX
15) Qus.: Do you have any Wealth?
Ans.: Yes
Tax : PAY WEALTH TAX
16) Qus.: To reduce Tension, for entertainment, where are you going?
Ans.: Cinema or Resort.
Tax : PAY ENTERTAINMENT TAX
17) Qus.: Have you purchased House?
Ans.: Yes
Tax : PAY STAMP DUTY & REGISTRATION FEE
18) Qus.: How you Travel?
Ans.: Bus
Tax : PAY SURCHARGE
19) Qus.: Any Additional Tax?
Ans.: Yes
Tax : PAY EDUCATIONAL, ADDITIONAL EDUCATIONAL &
SURCHARGE ON ALL THE CENTRAL GOVT.’s TAX !!!
20) Qus.: Delayed any time Paying Any Tax?
Ans.: Yes
Tax : PAY INTEREST & PENALTY
21) INDIAN : Can I die now??
Ans : No, wait we are about to launch the FUNERAL TAX
Your comments are welcome.
Yes a brilliant article I am pleased to have found it
nice post, looks really good!
I agree with you. Our tax system is too complicated for the common man and only Ramlila Maidan will be the solution.
According to the Government business man is earning very much,
They don’t even know that the margins are shrinked to less than 4 percent but the lowest VAT tax slab on sale is 5 percent…
The goverment wants all the people of india to be a slaves, as only they have subsidies are the salary man, rest all business mans are to get screwed..
They don't want the common man to be get big. otherwise they have to hear him..
In India if this structure will prevail for 20 years more, we will all be like bangladesh, as these countries only have labour (Nurses,un-skilled labor etc.) NO domestic production.
All Thanks and credit goes to the GREAT INDIAN GOVERMENT, as they are so efficient (in corruption ) they think why the hell these people should get the money for just doing business…
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good post ….. really helpful…!!
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You know, taxes opacity exist also in Europe! It's hard to know how profits will be taxed, sometimes.
i have read before ever…but good one again…i appreciates to your work.
The Rakish Nevin