Many people don't know what are the taxes they pay every year. Let us have a brief of it.
Taxes in India are categorized as Direct and Indirect.
Direct taxes are paid directly to the government. Income tax is the best example in this category.
Indirect taxes collected from government through intermediaries or manufacturers. Service tax is a best example in this category. When you go to a restaurant you pay service tax as part of the bill. The restaurant then pay service tax to government.
So which tax goes to which part of the government?
Central - Income tax, service tax, excise duty and customs duty
State - Sales tax, VAT, entertainment tax, toll, professional tax, stamp duty, luxury tax, octrai duty and capital gain tax
Local - Property tax
Taxes in India are categorized as Direct and Indirect.
Direct taxes are paid directly to the government. Income tax is the best example in this category.
Indirect taxes collected from government through intermediaries or manufacturers. Service tax is a best example in this category. When you go to a restaurant you pay service tax as part of the bill. The restaurant then pay service tax to government.
So which tax goes to which part of the government?
Central - Income tax, service tax, excise duty and customs duty
State - Sales tax, VAT, entertainment tax, toll, professional tax, stamp duty, luxury tax, octrai duty and capital gain tax
Local - Property tax
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