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Did you hear the news about the gst late fee waiver and are wondering what is a gst? well it it is a type of indirect tax. Indirect taxes are the charges levied on a person who consumes goods and services since these taxes are included in the price of those goods and services. There are many different types of indirect taxes, let’s take a look at some of them:
1. Service tax
Service tax is a consumption-based indirect tax for the supply of services. It is levied on the sale, lease or rental of goods and services, except for certain exempted activities. The rate of service tax varies with the taxable turnover and value of the goods or services sold or consumed in India.
Service tax is levied on services provided by an income-earning entity within India. This includes activities such as the provision of goods and services, the sale of goods or any other activity which forms part of the economic activity of a person or enterprise.
Service tax is paid by the service provider only when it is charged to its customer in accordance with the rules laid down in law. If there is no agreement between the customer and the service provider regarding charges for services rendered, then service tax will not be payable by either party.
2. Excise duty
Excise duty is a tax levied on the manufacture, sale, distribution or supply of goods. It is a form of indirect tax and is levied on the sale price of the goods. The rate of excise duty varies from country to country but it is generally higher than customs duty. Excise duty has been imposed on tobacco products in India since 2010.
In India, excise duty has been levied on matches, cigarettes, alcohol and petroleum products since independence. Tobacco products such as cigars, cheroots and cigarettes were included in the list in 1952 when India became a republic. The government had also exempted matches from being chargeable with an excise duty during World War II when there was an acute shortage of raw materials for manufacturing matches. However, it was reintroduced again with effect from 1st April 1948 after the war ended.
3. Custom duty
A customs duty is a tax that is levied on the importation of goods into a country. It is often used to control the influx of foreign goods into the local market and ensure that only domestic products are sold in the country. The rate at which customs duty is imposed depends on the volume of imports, their value and other factors such as whether they are produced locally or imported from other countries.
4. Stamp duty
Stamp duty is a tax charged on documents such as cheques, bank statements and bills of lading issued by financial institutions such as banks or post offices. It can also be levied on sales contracts signed between businesses or individuals who are not in business together but wish to buy or sell something together. Stamp duties are usually paid by sellers but may also be paid by buyers if they do not receive payment for their goods until after they have left the country (for example when travelling overseas).
5. Goods and Services Tax (GST)
The Goods and Services Tax (GST) as the name suggests is for all goods and services in India and is now the main indirect tax system here. The GST was introduced on 1 July 2017, replacing the existing indirect taxes such as Central Sales Tax (CTs), State Value Added Tax (VAT), Entry Tax, Luxury tax and others because of the numerous gst advantages.
6. Securities Transaction Tax (STT)
Securities Transaction Tax (STT) is an indirect tax levied on transactions relating to stocks, shares, bonds and debentures. STT is collected by the stock exchanges through their registration fees which are included in the cost of trading securities and other investment instruments like gold coins, precious stones etc. STT also includes stamp duty and registration fees charged by notaries public or registrars for documents filed with them in connection with any transaction on stock exchanges.
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