Income Tax Basics

Sales Tax

A sale or purchase of goods is said to take place when the transfer of property in the existing goods or future goods takes place for consideration of money.
In most of the cases related to the sales tax, the tax on the sale or purchase of goods is at single point.
The goods have been divided into different categories and different rates of sales tax are charged for different categories of goods.
The state can levy different rates of sales tax on different commodities , under the States Sales Tax Act. Click here for more details.

Customs Duty

Keeping in view the penal provisions in the Customs Act to deal with any deliberate evasion of prohibition/restriction of import of export of specified goods, one must be aware of the provisions of EXIM Policy, the Customs Act, as also other allied Acts.
They must make sure that before any imports are effected or export planned, they are aware of any prohibition/restrictions and requirements subject to which alone goods can be imported/exported, so that they do not get penalized and goods do not get involved in confiscation etc. proceedings at the hands of Customs authorities.
The government may enforce restrictions/prohibitions when it comes for the protection of public morals, human, animal or plant life or health, patents, trademarks and copyrights, national treasures of artistic, historic or archaeological value or trade of fissionable material or material from which they are derived. Also for the prevention of deceptive practices, prison labour and traffic in arms, ammunition and implements of war. Click here for more details.

Central Excise Duty

Central Excise duty is an indirect tax levied on goods manufactured in India. Excisable goods are those which have been specified in the Central Excise Tariff Act as being subjected to the duty of excise. Under excise, ‘Goods’ are the items that are capable of being moved and capable of being sold.
Central Excise Act defines 'Manufacture' as process wherein the name, characteristic and use of the input are changed or is/becomes distinct and different after the process. Repairing or reconditioning does not constitute manufacture. Assembling would constitute manufacture. Click here for more details.