INDIRECT TAX LAWS Compliances Services
Indirect Taxes are those taxes the incidence of whose is transferred to ultimate consuler of product or service. As of now India does not have common structure for Indirect Taxes in form of GST and have multiple Indirect Taxes in forces that include Value Added Tax, Sales Tax, Excise Duty, Service Tax, Custom Duty, Stamp Duty and entry Tax.
We, at S K Patodia & Associates, have dedicated team of experts providing multidimensional professional services in various Indirect Tax Laws. Our team gives you the perspective and support to manage indirect taxes more effectively and efficiently. We assists our client in the following service that are required in pre Business Set up Phase-
Obtaining registration under Central Excise Act
To carry out the manufacturing activities in India one has to get registered under the “Central Excise Act. Below mentioned persons are required to obtain excise registration:
- Every manufacturer of dutiable goods.
- First and second stage dealers desiring to issue Cenvatable invoice.
- Persons holding warehouses for storing non‐duty paid goods.
Obtaining Service Tax Registration Number
“Service Tax” is a tax imposed by Government of India on services provided in India. Every service provider, providing services chargeable to service tax is required to obtain service tax registration number once his turnover exceed INR 9 Lakhs . After the recent amendment in law, service tax is charged on all services except the services in the negative list of services. The current rate is 12.36% on gross value of the service, the breakup is as follows-
- Service tax rate=12%,
- education cess at 2%=0.2%
- senior and higher education cess at 1%=0.1%
Effective service tax rate=12.36%.
Obtaining Value Added Tax Registration Number and Central Sales Tax Registration Number
VAT (Value Added Tax)- is a form of indirect tax imposed only on goods sold within a particular state, which essentially means that the buyer and the seller needs to be in the same state. Only when tangible goods and products are sold, VAT can be imposed.
CST (Central Sales Tax)- is a form of indirect tax imposed only on goods sold from one state to another state, which particularly takes into account that the buyer and the seller needs to be in two different states.
VAT (Value Added Tax)registration is compulsory for dealers having turnover exceeding Rs 5 lacs (or increased limit of Rs 10 lacs in some states).On registration, such dealer is allotted a unique 11 digit TIN (Taxpayer’s Identification Number).
CST (Central Sales Tax)registration is not dependent on amount of turnover. Simply put, registration of dealer becomes compulsory once he affects an inter-state sale.
Obtaining Import Export Code Number
IEC Code is unique 10 digit code issued by DGFT – Director General of Foreign Trade , Ministry of Commerce, Government of India to Indian Companies. Full From To import or export in India, IEC Code is mandatory. No person or entity shall make any Import or Export without IEC Code Number.