《外国税制》程黎 范信葵 chapter VIII.pptVIP

VIII Taxation in India 1. Overview India has a well developed tax structure with a three-tier federal structure, comprising the Union Government, the State Governments and the Urban/Rural Local Bodies. The power to levy taxes and duties is distributed among the three tiers of Governments, in accordance with the provisions of the Indian Constitution. 1.1 The main taxes/duties that the Union Government is empowered to levy are Income Tax (except tax on agricultural income, which the State Governments can levy), Customs duties, Central Excise and Sales Tax and Service Tax. 1.2 The principal taxes levied by the State Governments are Sales Tax (tax on intra-State sale of goods), Stamp Duty (duty on transfer of property), State Excise (duty on manufacture of alcohol), Land Revenue (levy on land used for agricultural/non-agricultural purposes), Duty on Entertainment and Tax on Professions Callings. 1.3 The Local Bodies are empowered to levy tax on properties (buildings, etc.), Octroi (tax on entry of goods for use/consumption within areas of the Local Bodies), Tax on Markets and Tax/User Charges for utilities like water supply, drainage, etc. Since 1991 tax system in India has under gone a radical change, in line with liberal economic policy and WTO commitments of the country. Some of the changes are: Reduction in customs and excise duties Lowering corporate Tax Widening of the tax base and toning up the tax administration Since April 01, 2005, most of the State Governments in India have replaced sales tax with VAT. Constitutionally established scheme of Taxation List - I entailing the areas on which only the parliament is competent to make laws, List - II entailing the areas on which only the state legislature can make laws, and List - III listing the areas on which both the Parliament and the State Legislature can make laws upon concurrently. 2. Taxes Levied by Central Government Taxes on income other than agricultural income Duties of customs including export