Credits: Jayraj Sheth, Mahesh Joshi; Reliance
Indirect Taxes
Central
· Custom Duty
· Excise Duty
· Service Tax
· CST (collected and retained by State)
State
· VAT/ Sales tax
· Entry Tax
· Entertainment Tax
· Luxury Tax
· Excise Duty on Tobacco/ Alcohol
· Stamp duty
Local/ Muncipal
Octrai/ Cess/ LBT: Not recoverable, paid by person causing entry
Export duty: If govt. wants to discourage exports
For SEZ:
· Must be foreign Exchange positive
· At max 33% can be sold in India
For india, custom duty + excise duty
For transfer from reliance to reliance, use F-Form to save tax.
Buyer and Seller Same State: VAT
Different State: CST
Custom Duty Component
Effective Rate: B+D+E+F
= 28.89
Common playing ground
Indian
Excise Duty
VAT
Global
Additional Custom Duty
SAD (refund once you resell)
Excise Duty: 12.36% (including education cess)
CST for B2B: 2% against “C Form” (No credit available) “Different state”
VAT: 14% (Full Credit available) “Same State”
Interest for delayed tax pay: 13 to 24%