Brief Notes Types of Taxes for SSC, UPSC, Banking
Hello Aspirants, in this article we will look into the basic definition of a tax, types of tax, and also briefing the types of tax.
These Brief Notes Types of Taxes for SSC, article is very important for students who are preparing for exams like SSC, Banking, RRB, and all other government and non-government exams.
What is tax?
Tax is basically an amount that is paid directly or indirectly to the government by an individual or an organization so that in return the government provides us public services like education, roads, health facilities, police protection, etc.
Tax can be broadly classified into two categories-
- Direct Tax
- Indirect tax
Direct Tax
When an individual or an organization pays directly to the government (or the imposing entity).
- Income tax
- Wealth tax
- Property tax
- Corporation tax
Income tax
An individual or organization has to pay a small amount to the government based on the individuals’ income or profit. The percentage of the amount paid varies for different income slots, and this is set by the government.
Wealth tax
The tax imposed on total personal assets (real estate, bank deposits, etc.).
Property tax
This tax is called the “ad valorem” tax. It means according to value. It is imposed on private properties such as houses, cars, land, etc.
Corporation tax
A direct tax imposed on a company by the government. This tax is also called company tax, or sometimes corporation tax.
Indirect Tax
When an individual or an organization pays indirectly to the government through a registered government representative.
- Excise tax
- Customs duty
- Service tax
Excise tax
This tax is imposed on the production of certain goods and services like cigarettes, alcohol, gasoline, etc by the government.
Customs duty
This tax is imposed on the import and export of goods, i.e. when goods cross the boundary of a country.
Service tax
Service tax is a tax given by the customers indirectly to the government when a customer uses a service. But the customer will pay the tax if only the service consumed has a value of more than 10 lakhs in a given financial year.
Trick to learn the types of tax
Trick- We Pro Co In
Wealth (We)
Property (Pro)
Corporation (Co)
Income (In)
Trick- Ex Cu Se (recall using the phrase Excuse me)
Excise (Ex)
Customs (Cu)
Service (Se)
Update
Goods and Services Tax
GST is an indirect tax and has replaced many indirect taxes in India. GST will help in saving a lot of time and cost as it will include or absorb many indirect taxes such as VAT, entertainment tax, customs duty, excise duty, sales tax, etc. It will also help in doing business with ease once everything is organized properly.
Types of GST
There are three types of GST-
- CGST (Central Goods and Services Tax)
- SGST (State Goods and Services Tax)
- IGST and UTGST (Integrated Goods and Services Tax and Union Territory Goods and Services Tax)
KEY POINTS
- The first country to implement GST- FRANCE
- The GST model of India is based on the Canadian Model.
- India implemented GST on 1st July 2017.
- Vijay Kelkar Committee recommended the GST.
- The first state to implement GST- Assam.
- GST was the 122nd Constitutional Amendment Bill introduced in the parliament.
- GST implemented in India by the 101st Constitutional Amendment Act of 2016.
- Chairman- Finance Minister
If you liked this Brief Notes Types of Taxes for SSC, UPSC then PLEASE SHARE WITH YOUR FRIENDS.
SHARING IS CARING
READ MORE:-