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Taxes applicable in India if doing business


CA Pulkit Sharma

2014-01-06

Indian Tax Laws are very complicated. Recently Kapil Sharma got Service Tax notice and he said that Indian Laws are so complicated and numerous that even Chartered Accountants or Lawyers can't have a track on them.

Here is a list of some of taxes that are applicable if you are going to start business in India:

Trading

  1. VAT (Value Added Tax) - Subject to some conditions like if your sales cross 5 Lakh etc.
  2. Profession Tax - Not applicable in Delhi.
  3. CST (Central Sales Tax) - Incase you deal in transactions that involves other states. 

Services

  1. Service Tax - Subject to receipts or billing cross 9 lakhs in a year
  2. Profession Tax

Manufacturing

  1. Excise - Incase production crosses 1.5 crore in a year
  2. Profession Tax
  3. VAT
  4. CST

Income Tax is common for all. The above taxes are indirect in nature, direct taxes that are applicable to your organisation or to businessmans are:

  1. Income Tax
  2. Wealth Tax

Manish Agrawal

2014-01-16

Few more taxes and licenses are applicable as follows:

  1. Shop & Establishment
  2.  Trade License.
  3. Import and Export Licenses (for Importer and exporter)
  4. Drugs License (for Medicine related unit)

 

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