01-01-2018, 04:29 PM
*Tax is a compulsory payment made by individual or corporate bodies to Government.
*Tax was firstly imposed in Egypt.
*Article 265 of the constitution deals with taxes.
*There are mainly two types of taxes (i) Direct Taxes (ii) Indirect Taxes
*Direct tax is a tax paid directly to the government by the persons on whom it is imposed.
eg: Income Tax, Land Tax, Property Tax, Building Tax
*Indirect Tax is levied on goods or services rather than individuals and is ultimately paid by consumers in the form of higher price, eg: Excise Duty, Sales Tax, Entertainment Tax, Customs duty.
*Taxation is a part of fiscal policy.
*Propotional taxation : A tax is called proportional if all tax payers pay the same proportion of their income as tax.
*Progressive taxation : A progressive tax is one which the tax rate increases with the increase in the tax base.
*Regressive tax : The average tax rate declines as the size of the tax base increases.
*Degressive Tax : The rate of tax increases upto a certain limit beyond which uniform rate is charged.
*Cartel : An association of producers to regulate prices by restricting output and competition, eg: OPEC.
*Corporation tax is the tax on the income of the companies.
*Corporation tax is levied by central govt.
*Corporate Tax/Corporation Tax is the major source of revenue of Central Government.
*Service Tax :- It is levied by union, collected by union and states.
*Article deals with service tax is 268 A.
*The major source of revenue to the State Government is sales tax.
*The Employment Tax, Entertainment Tax, Building Tax are levied by local bodies.
Union Taxes
*Taxes on income, other than Agricultural
*Corporation Tax
*Customs duties
*Excise; duties, expect on alcoholic, liquor and Narcotics
*Taxes on sales or purchase of news papers and on advertisement
*Taxes ori railway fright and fares
State Taxes
*Land revenue
*Taxes on the sale and purchase of goods, except hews papers Taxes on Agricultural income,
*Taxes on land and building
*Excise duties on alcoholic, liquor and narcotics
*TAXES on vehicle and boats
*Octroi,entertainment and Corporation tax are collected by Local bodies
*Value Added Tax is a tax levied at each state in the production of goods or services that result in value being added to the product.
*The chairman of the empowerment committee introduce VAT in India
Ans : Asim Das Gupta
*The finance minister of India at the time of formation of empowerment authority of VAT
Ans : Dr. Manmohan Singh
*MODVAT stands for Modified Value Added Tax. It was firstly introduced with effect from 1st March 1986.
*MODVAT has now been replaced by CENVAT (Central Value Added Tax).
*CENVAT means tax on value addition on goods manufactured according to Central Excise and Customs Act definition.
*“Toll” is a tax imposed over Bridge and Road transportation.
*Octroi is a tax on various goods brought into a town.
*‘Carbon tax’ is a type of tax imposed on the carbon content fuels.
*‘Fat tax’ is a tax imposed on fast foods, aims at discouraging unhealthy diets in Western countries.
*‘Wealth tax’ is imposed on the wealth or property of the individuals.
*First Indian state to introduce fat tax
Ans : Kerala
*‘Expenditure tax’ is a tax imposed on hotels where accommodation is Rs. 400 or more per person.
*TOBIN Tax: Suggested by Nobel prize winner James Bin in 1978. It-is a tax imposed on foreign money marked or Forex marked.
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*Value Added Tax (VAT) was firstly introduced in France in 1954.
*The first Asian country to introduce VAT
Ans : South Korea
*Haryana is the first state to introduce VAT in India (2003 April 1)
*Income tax came in to force on
Ans : 1962 1st April
*Value Aded Tax (VAT) came in to force on
Ans : 2005 1stApril
*VAT implemented throughout India
Ans : 2nd June, 2014
Key Facts
*The first Country introduced Carbon Tax
Ans : New Zealand (2005)
*The first country introduced Fat Tax
Ans : Denmark
*The first country introduced Salt Tax
Ans : China
