India has a well Structured taxation System. The tax system in India is mainly a three tier system which is based between the Central, State Governments and an authority of a state, such as the Municipality, corporation or the Local Council. The main taxes/duties that the Central Government is empowered to levy are Income Tax (except tax on agricultural income, which the State Governments can levy), Customs duties, Central Excise and Sales Tax and Service Tax. The principal taxes levied by the State Governments are Value Added Tax (VAT or Sales tax in States where VAT is not yet in force), Sales Tax (tax on intra-State sale of goods), Stamp Duty (duty on transfer of property), State Excise (duty on manufacture of certain goods), Land Revenue (levy on land used for agricultural/non-agricultural purposes), Duty on Entertainment and Tax on Professions & Callings. The Local Bodies are empowered to levy tax on properties (buildings, houses), Octroi (tax on entry of goods for use/consumption within areas of the Local Bodies), Tax on Markets and Tax/User Charges for utilities like water supply, drainage, etc.
Taxation is the government's main source of revenue and several types of taxes are applied to different categories of the population. The citizens pay tax which is the main source of income. These funds are used to finance infrastructure and other development projects in the country. The tax has to be supported by the law passed by the legislature. The Ministry of Finance in India regulates and administers tax. The Department of Revenue is a part of the Central Board of Direct Taxes. The Central Board of Revenue Act of 1963.
The following is a brief description of some of the taxes that are levied in India by the government:
Property Tax - Tax charged on property owned by individuals or corporate.
Sales Tax - Tax on sale of goods
Value Added Tax- A manufacturer and trader have to pay this tax when they purchase raw materials and goods. Sales Tax is expected to be replaced by VAT. VAT applies to all goods and services provided by businesses.
Capital Gains Tax- A capital gain is an income generated by selling a capital investment. The 'gain' is the difference between the price that was paid for the investment and the amount of money that was received after it was sold.
Service Tax- As per the Finance Act of 1994, all service providers in India, except those in the state of Jammu and Kashmir, are required to pay a Service Tax in India.
Fringe Benefit Tax- As per Section 115WB of the Finance Bill, expenses incurred for employees, by an employer (individual/company/local authority/trader) for purposes of entertainment, gifts, telephone, clubbing, festivals etc., will be treated as Fringe Benefits and will be taxed.
A career in Taxation will give you the chance to work for a high-quality, professional organization. Tax consultants are people who are well aware of the different forms of taxes which are to be paid and use their knowledge in order to advice people or companies as to how to go about it. Tax consultants give useful insights on how to handle the various aspects of taxes. You can get a tax consultant's job profile if you have done the taxation related courses and have some work experience in the field. The main aim of any tax consultant is to maximize the use of his or her technical knowledge for the benefit of the company he is working for.
Job Prospects & Career Options
Business tax consultant: Business tax consultant’s area of knowledge deals with various issues relating to taxes that a business man must handle properly for his business to work efficiently and effectively. Thus a business tax consultant gives advice to business houses regarding the various business tax issues that are plaguing them.
Sales tax consultant: A sales tax consultant is a person who gives advice to his or her clients regarding the various sales tax as well as value added tax related issues for which they may be seeking clarification, information or advice.
The primary role of a tax consultant is to advise his clients on how to file their taxes. Their job is to help and give assistance to their clients in their tax planning. Tax consultants need to be aware of the various tax laws in the country and how they will affect their clients. They should be aware of the various income tax rules and regulations. The job of a tax consultant is to understand the business of the company they work in and help the organization in its tax position as well as identify and mitigate various risk areas. The main goal of any tax consultant is to maximize the use of his or her technical knowledge for the benefit of the company he is working for.