OVERVIEW ON TYPES OF TAXES CITIZEN BREATHING TAX? SLEEPING TAX? WALKING TAX? T NOT DOING ANYHING TAX? PROFESSIONAL TAX ENTERTAINMENT TAX TOLL TAX CESSES ENTRY OCTROI TAX SALES TAX CUSTOMS DUTIES EXCISE DUTIES INCOME TAX WEALTH TAX GIFT TAX DEATH TAX SERVICE TAX LUXURY TAX CORPN TAX ORIGIN OF THE WORD “TAX”: TAXARE =TO TOUCH SHARPLY
TAXPAYERS ARE SUBJECT TO PENALTIES FOR NOT PAYING TAXES AND NOT FILING RETURNS TIMELY , AND FOR ANY NEGLIGENCE OR FRAUD.
IGNORANCE OF LAW IS NO EXCUSE.
INDIAN INDIRECT TAXATION : AN OVERVIEW INDIRECT TAXES CAN BE ON GOODS OR “NON-GOODS” # CUSTOMS DUTY GOODS ON GOODS IMPORTED /EXPORTED # EXCISE DUTY ON GOODS PRODUCED OR MANUFACTURED From and to outside “ INDIA” IN INDIA
CST ON INTERSTATE TRADE AS PER CENTRAL SALES TAX ACT 1956 AS STATES CANNOT IMPOSE SALES TAX ON INTERSTATE TRADE.
V.A.T . WHAT IS V.A.T. AND WHAT IT IS NOT VALUE ADDED TAX A METHOD TO ELIMINATE DOUBLE TAXATION ON THE SAME TRANSACTION THIS IS NOT VAT !#*&*
VAT : CHARECTERISTICS MULTIPOINT TAXATION: TAX AT EVERY POINT OF SALE EFFECTIVE TAX AT EVERY POINT OF SALE: ONLY ON THE VALUE ADDITION AT EACH POINT OF SALE METHODOLOGY ADOPTED IS BY A SYSTEM OF OFFERING CREDIT OF TAX TO THE BUYER . HE USES THIS FOR PAYING TAX ON HIS SALES PURCHASED SOLD DESTINATION BASED. ENTIRE BURDEN ON CONSUMER
VAT :CLARITY OF ISSUES WHAT IS <VALUE ADDITION> VALUE ADDITION WITHOUT ANY CHANGE IN THE PRODUCT EG: TRADING OR RESALE VALUE ADDITION RESULTING IN A NEW PRODUCT EG: MANUFACTURE OF NEW GOODS FROM OTHER GOODS WE MAKE TASTY FOOD CAR DEALER
Types of Financial Markets Types of Financial Markets Types of Financial Markets Types of Financial Markets Types of Financial Markets Types of Financial Markets Capital Market Money Market Forex Market Equity Debt Retail Corporate Banks FI FIIs T-Bills Call Money ICD, CP, CD Banks Corporate FI, FIIs Spots Forwards Banks Corporate FI, FIIs Agriculture Produces, Metals, Financial futures like Interest rate, currency, indices etc Banks, FIs Corporate Derivatives Market
Structure of Indian Financial Markets Structure of Indian Financial System GOI Ministry of Finance RBI SEBI Depositories Companies Broker Dealers Clearing Corporations Stock Exchanges Mutual Funds Banks Registrar of Companies Merchant Bankers Registrar & Transfer Agents Primary Dealers GOI Dept of Co. Affairs Depository Participants GOI Ministry of Finance RBI SEBI Depositories Companies Broker Dealers Clearing Corporations Stock Exchanges Mutual Funds Banks Registrar of Companies Merchant Bankers Registrar & Transfer Agents Primary Dealers GOI Dept of Co. Affairs Depository Participants
The financial “services” industry wishes to make quick money,
Investors wish to make “quick” profits,
Greed on both sides
No investment, but speculation!
The regulator comes into picture!
Financial Sector Regulators Regulators Reserve Bank of India (RBI) Securities & Exchange Board of India (SEBI) Insurance Regulatory and Development Authority (IRDA) Banks Capital Markets/ Mutual Funds Insurance Companies
Banking in India Legal framework of Banks Banking Regulation Act,1949 Reserve Bank of India Act,1934
SEBI Press Release (no. 108/2005 dated August 26, 2005) on Minimum Public Shareholding
All listed companies to maintain at least 25% shareholding with public for continuous listing. However, companies permitted to make an IPO of atleast 10% to public under Rule 19(2)(b) to maintain min. 10% only
Listed companies, not complying with the min. public holding requirement to be given a period of 2 years for compliance
Government companies, infrastructure companies and companies registered with BIFR to be exempted
Effective 9-1-2006, no charges will be levied by a depository on a DP and by a DP on a Beneficiary Owner (BO) when a BO transfers his account to another branch of the same DP or to another DP of the same depository or another depository.
SEBI had already waived the following charges effective February 1, 2005 –
charge towards opening of a BO Account except for applicable statutory charges