Taxation project new

1. PROJECT REPORT
ON
“TAXATION SECHDULES FOR THE INDUSTURY WITH THE SPECIAL
REFERENCE OF
ThinkNEXT Technologies PVT. Ltd”
An industrial training report submitted in partial fulfillment of the requirement for the degree
of
MASTERS OF BUSINESS ADMINISTRATION
(2014-2017)
Submitted by:
Ritika
BBA 5th SEM
Roll no.1434320
KC GROUP OF INSTITUTIONS
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2. DEPARTMENT OF MANAGEMENT
I RITIKA declare that I myself worked on the topic “TAXATION
SCHEDULES” under ThinkNEXT Technologies Pvt. Ltd., Mohali.
Submitted by me towards partial fulfillment of my BBA degree under
the guidance of MR. Gopal Pandey, project guide is an original work
done by me and it has not been submitted to any other university or
published any time before.
Signature of the Student:
Place: Mohali
Date:
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3. CERTIFICATE
TO WHOM IT MAY CONCERN
This is to certify that the project titled INDUSTRIAL TAXATION
SECHDULE with the special reference OF ThinkNEXT Technologies Pvt.Ltd.,
Mohali is the original work carried out by the me submitted to Punjab technical
university, Punjab under the supervision of MR Gopal Pandey. Submitted in
partial fulfilment for the award of Bachelor’s degree in Commerce (BBA.).
This project was completed within the stipulated time period as per the statues
of the university.
It is further certified that this work has not been submitted earlier in this
university or any other university for any degree/diploma.
Guide Branch Head
___________ __________________
Place: Mohali
Date:
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4. ACKNOWLEDGMENT
First of all I would like to express my deepest gratitude to Almighty Allah who
bestowed his blessings on me and gave me the courage and right type of
environment for the completion of my project. I owe a deep sense of
indebtedness to my family which has always been a perennial source of
inspiration for me.
I am very thankful to my project guide MR. Gopal Pandey for providing me
with the handful information required for the successful completion of the
project.
I am deeply grateful to Ms PriyaDhir for their everlasting support or guidance
on the ground of which I have acquired a new field of knowledge the course
structure created for curriculum has benefited with inclusion of recent
development in an organizational& management aspect.
I would also like to thank Mr. AvtarKrishan, GNA University for his valuable
guidance and support .
Last but not the least; I would like to thank all the employees of ThinkNEXT
Technologies Pvt.Ltd., Mohali who have given me valuable information in the
part of my project. Above all, I would like to thank all contacted persons of firm
who took out their valuable times to answer my queries & give me full
information related to my project.
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5. PREFACE
This training pertains 6 weeks industrial training that I understood at
ThinkNEXT Technologies PVT.LTD., Mohali as a part of my curriculum of the
program which I am pursuing.
The main purpose of this vocational training is to expose the students with
practical experience of actual industrial environment in which they will be
required to work in the near future.
The trainees learnt from the professional managers under whom we were placed
for training.
Justification can’t be done to whatever I had learnt in 6 weeks within few pages
but I have still tried my best to cover as much as possible in this report.
(RITIKA)
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6. TABLE OF CONTENT
S.No. Chapter Name Page No.
Chapter-1 Introduction to
• Company profile 7-20
Chapter-2 Introduction To Project 21-29
Chapter-3 Review of Literature 22-38
Chapter-4 Scope, Object, Limitations of the Study 39-40
Chapter-5 Research Methodology 41-53
Chapter-6 Tax Deducted At Source 54-58
Conclusion 59-61
Bibliography 62
Annexure 61-74
CHAPTER-1
INTRODUCTION
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7. 1.1 INTRODUCTION ABOUT IT INDUSTRY
Information Technology covers a broad spectrum of hardware and software solutions that
enable organizations to gather, organize, and analyse data that helps them achieve their
goals. It also details technology-based workflow processes that expand the capacity of an
organization to deliver services that generate revenue. The four main focuses of IT
personnel are business computer network and database management, information security,
business software development, and computer tech support.
As the IT industry evolves to meet the technology demands of today’s workplace, different
challenges are arising and IT professionals are striving to meet them. Network security is
by far the greatest concern for many companies and they rely on their IT staff to prevent or
stop these system breaches. Data overload is becoming an increasingly important issue
since many businesses are processing large amounts of data on a daily basis, with many of
them not have the processing power to do so. Last, but not least, two of the most essential
skills needed from IT professionals are teamwork and communication skills. Systems are
complex and people are needed to help translate that task. Therefore, IT professionals are
the ones responsible for helping others get their work done efficiently without the complex
jargon of the technology world.
Let’s talk about careers for a moment. Employment for information technology and
related services are projected to grow rapidly over the next decade, outpacing similar
professional, scientific, and technical industries, as well as the economy as a whole.
According to the Bureau of Labor Statistics (BLS), “output in computer systems design
and related services is expected to grow at an average annual rate of 6.1 percent [between
2010 and 2020], compared with 3.6 percent for the broad industry category—professional,
scientific, and technical services—and 2.9 percent for all industries.” Compared to 2.6
percent for professional, scientific, and technical services and 1.3 percent for all other
industries, that’s a huge demand coming up! Why is this happenings?
Because the necessity for information technology is king. With the emerging popularity of
the Cloud technology, many organizations are taking this up as an alternative to actual
hardware using up space. Cloud computing service providers manage IT infrastructure and
platforms, and provide businesses with access to remote data storage and software
packages.
Another reason for the rise of IT careers is the need to defend our information systems
from countless attacks. Just in the past few years alone, the BLS reports “there is a 17-fold
increase in the number of cyber-attacks on U.S. infrastructure between 2009 and
2011.”Security companies also have produced reports that show large increases in security
breaches on private businesses in those years as well.
With the increasing need for IT professionals, this seems to be one of the more stable
careers for the next decade. One of the first steps to becoming an IT professional is to
obtain a degree or certification in computer or management information systems. Then you
must decide which field to go into, as there are many in the IT universe.
Here are some of the most popular positions for people interested in Information
Technology:
1.Computer Systems Analyst.
In this position, analysts design and develop computer systems and are an expert at every
facet of hardware, software, and networks. Analysts also evaluate the systems and research
the industry for better products to enhance their existing system.
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8. 2.Cloud Specialist.
Cloud specialists organize and give configuration to the information infrastructure in the
sky. Because this is still an emerging technology, these architects are highly sought after
and one of the top-paying professions in the industry.
3. Computer Forensic Investigator.
These investigators are computer crime detectives that search for, identify, and evaluate
information from computer systems.
4. Health IT Specialist.
Health IT is booming, especially with Affordable Care Act coming on and transition from
paper to electronic health records. Health IT specialists will mix computer knowledge will
record-keeping skills, medical coding, and billing.
5. Database Administrator.
Database administrators create, upgrade, and test for databases.
6. Web Developer.
Web developers are in high demand because they have a great understanding of what
makes a good operating system. They create web pages, web applications and web content
with their knowledge of what the average surfer finds visually stimulating and how to
optimize sites for mobile tech, among numerous other skills.
7. IT Manager.
These managers are the contact pros when your email won’t send or Microsoft Word
doesn’t open. As the head of the IT department, they ensure that a company’s network is
operating smoothly and that dangerous threats like malware are minimized.
8. Information Technology Vendor Manager.
Slightly more hands-off compared to some tech positions, vendor managers oversee supply
when it comes to software and hardware. This can mean anything from Microsoft’s latest
word processor to health IT programs for hospitals.
9. Computer Systems Administrator
The expertise of network and computer systems administrators is essential to every office.
Aside from maintaining a healthy computer network, they also lend their tech knowledge
to managing telecommunication networks. This profession is expected to add 96,600 new
positions by 2020!
10. Mobile Application Developer.
Because of our highly-mobile lifestyle, mobile application developers are and will
be in high demand for years to come, especially as mobile devices and technology
becomes increasingly sophisticated.
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10. 1.1 COMPANY PROFILE
ThinkNEXT Technologies Private Limited (Formerly Brilliant Software Solutions) is an ISO
9001:2008 certified software development company founded in August 2009 and it is
approved from Ministry of Corporate Affairs which deals in University/College/School ERP
Solutions, Android /iPhone Applications development, Web designing, Web development,
Discount Deals (www.thinknextcard.com, www.tricitydeal.com), Bulk SMS, Voice SMS,
Bulk Email, Biometric Time Attendance, Access Control, SEO/SMO, Database Solutions,
Payment Gateway Integration, E-Mail Integration, Industrial Training, Corporate Training
and Placements etc. ThinkNEXT Technologies provides software solutions using latest
technologies e.g. Smart Card, NFC, Biometrics, GPS, Barcode, RFID, SMS, Auto SMS
(Short code), Android, iPhone, Web, Windows and Mobile based technologies
ThinkNEXT has wide expertise in .NET, Crystal Reports, Java, PHP, Android, iPhone,
Databases (Oracle and SQL Server), Web Designing, Networking, Web Server
configurations, various RAID Levels etc.
ThinkNEXT Technologies has also setup its offices in USA, Delhi, Shimla and Bathinda for
its software support. ThinkNEXT has its own multiple Smart Card printing, encoding and
barcode label printing machines to provide better and effective customer support solutions.
ThinkNEXT has also setup its own placement consultancy and is having numerous placement
partner companies to provide best possible placements in IT industry.
ThinkNEXT Technologies has developed for the first time in northern region cloud
computing based Cloud Campus 4.0 to facilitate knowledge and placement centric services. It
is a unique concept for effective and collaborative learning.
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11. • ThinkNEXT deals exclusively in campus automation through Smart Campus ERP
Solutions. Therefore we have better experience in handling large group of institutions
through proper time-tested policies and procedures.
• First Company of India who has Launched NFC Technology (The Future) for Smart
Campuses through NFC Smart Cards.
• First Company of India who has launched Android Version of Smart Campus ERP
Solutions for Mobiles and Tablet PCs.
• First company of India who has developed SMS Opt-In Technology so that
Institutes/Colleges can send Transactional SMS with SMS Sender ID and without
SMS Template approval.
• First company of Punjab, Haryana, Himachal, J&K (Northern region) who launched
Smart Cards (Contact Type), Smart Cards (Contactless) in Punjab for campus
automation.
• First company of India which has launched its ThinkNEXT Smart Card as Discount
Card in more than 120 enterprises.
• Established own multiple Smart Card Designing, Smart Card Printing, Smart Card
Lamination and Oyster Barcode Printing Units.
• Multiple SMS Gateway Support.
SERVICES:
We provide Software Solutions using latest technologies or features:
• NFC
• Biometrics (Fingerprint with Automated Online)
• Smart Card
• Barcode
• RFID
• SMS
• Short code 56767 (Auto SMS)
• Android
• ions (phone)
• GPS
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12. • WAP (For WAP Enabled Mobile Phones)
• Multiple SMS Gateway Support
• Web based Technologies (365x24x7 services)
• Windows based Technologies
• Mobile based Technologies
• Webcam support for various operations
• Parallel Internet, Intranet and Wi-Fi Support
Vision:
ThinkNEXT Technologies Pvt. Ltd. are already very flexible and scalable. Still, we always
take care of specific requirements of our clients. Our highly committed R&D team makes
our software feature rich, dynamic and future tuned everyday so that our clients always
maintain the lead over their competitors. The development of the software is being done
and the purpose full customization of the package is carried out in the ThinkNEXT lab.
Mission:
ThinkNEXT is pioneer in Smart Campus ERP Solutions for Universities/Colleges/Schools
using latest technologies and features. We provide software solutions using .NET, PHP,
Android, iPhone, Java technologies with three tier-architecture support. We provide back-
end solutions using MS SQL Server, Oracle, and MySQL.
Quality Policy:
We have wide experience working with eminent Educationists, Managements, Directors,
Principals, Head of Departments, other Staff Members, Parents and students. Therefore we
do not sell only software Modules but an innovative system which has more importance
than just ERP software modules. Today Smart Campus solutions are a need of hour for
every University/Group of Colleges or an Institution to make edge over others and maintain
a lead over their competitors. Our Research and Development team is committed to make
your institute(s) to maintain lead over their competitors.
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13. More Services:
• ThinkNEXT offers various industry-ready programs so that student needs not to
struggle for jobs. ThinkNEXT offers 6 weeks/2 Months/6 Months training programs
to make students industry.
• ThinkNEXT is pioneer in providing best placements in Industry. We offer minimum
five job interviews for each student and provide 100% Placement Assistance.
• ThinkNEXT Offers Life-Time Validity Learning and Placement Card. Students
undergoing six months training will have advantage to learn free of cost anything
against that training program for life-time.
• ThinkNEXT offers Part-Time/Full Time Job Offer for each student during training so
that students can earn while they learn. Student can bear their food, accommodation
and other expenses on.
MANAGEMENT OF ThinkNEXT PVT.LTD.
BOARD OF DIRECTOR
• Sunil Jindal
• Munish Mittal
• Ghansham Das
MANAGING DIRECTOR
• Sunil Jindal
MARKETING HEAD
• Suresh Chandra
IT HEAD
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14. • Mukesh Kumar
SOME OF OUR CLIENTS:
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18. PLACEMENTS
Company list
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20. INDUSTRIAL TRAINING
6 Months/Weeks Industrial Training Programs
• Microsoft .NET
• Android
• iPhone
• Java
• PHP/MySQL
• Web Designing
• Embedded Systems
• AutoCAD
• Online Bidding (Freelancing)
• Oracle/SQL Server Administration
• Software Testing and Quality Assurance
• Hardware & Networking
• CCNA
• MCITP
• SEO
• CATIA
• Pro-E
• Solid Works
• Human Resource
• Marketing
• Finance
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21. • (FREE Spoken English/Personality Development/IELTS Classes on daily basis
with Industrial Training + Job Offer)
• One-to-one Project and Project will be made Live and to make it Live,
ThinkNEXT will provide sub-domain and hosting worth Rs. 3000 absolutely free
to each student for web based Project. To host mobile apps, ThinkNEXT will
provide free Google Play account (For Android Mobile Apps) and Apple iTunes
Connect Account (Apple App Store) for iPhone Apps.
ThinkNEXT Edge:-
• Industrial Training and Certificates from Software/Electronics Company not just from an
institute
• Free Interview Preparation, Spoken English and Personality Development Programmers.
• Opportunity to get placed in ThinkNEXT and numerous other companies.
• Life-Time Validity Learning and Placement Card.
• Part-Time/Full-Time Job Offer for each student during Training.
• Think NEXT Cloud Campus advantage not only during training, even after completion
of training for life time.
• One-to-one PC and Corporate Environment.
• Learn from Developers/Industry experts rather than Trainers/Teachers.
• Direct interaction with Developers/Industry Experts.
• Industrial training programmers are designed to make students industry-ready.
• Large Display LEDs in each Class-Room/Lab, Wi-Fi Labs.
• Guest Lectures/Seminars by Industry Experts.
• Every Student is provided with “Live Projects” mentored by Software/
Electronics/Industry Experts.
• 100% Placement assistance.
ThinkNEXT Cloud Campus Advantages:-
• Each Student will have Unique User ID and Password to Login to ThinkNEXT Cloud
Campus 4.0 anytime…anywhere…
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22. • View Numerous Technical, Personality Development Videos anytime…any here…
• Students will be able to download e-Books, e-Journals, Class Notes, Important Links and
other study material.
• ThinkNEXT Smart Campus is a step towards not only 100% placements but also better
job offers even after placements.
• Student Profile, Instant Technical Updates, Class Notes, Project Report Submitted,
Attendance, Performance, Notice-Board, Class Timings etc. Everything online.
• Communication with industry experts, Technologists through cloud Campus anytime…
anywhere… .
• Regular SMSes and E-mail for Related Job.
CHAPTER – 2
INTRODUCTION TO PROJECT
Introduction to Taxes and Basic
Information
You might think that taxes are a necessary evil better left for professionals, but understanding
the basics can help you minimize the total amount of taxes that you pay.
When planning for taxes, we usually think of the Federal filing deadline of April 15,
however, you are required to pay taxes throughout the year. Paying the right amounts
throughout the year will save you from having to pay penalty charges for underpayments.
For most of us, the payments we make throughout the year are made on our behalf through
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23. our employers. Employers automatically withhold taxes from our gross earnings before
giving us our n
et earnings, the little numbers on our paychecks (or big numbers for you lucky ones).
your total income and taxes paid by submitting form W-2 to the IRS. You must then file your
taxes; which tells you the total amount of taxes owed and the total amount of taxes already
paid-and either pay the difference (if your automatic deductions were too small) or collect the
difference (if your automatic deductions were too big).
important tips
Throughout the year, there are important tips to follow in order to prepare for your taxes.
• First of all, get organized. Experts recommend the use of personal finance software to
enter and maintain accurate records. Keep records of expenses such as automobile
mileage incurred for business purposes and get receipts for charitable contributions. It
is also very important that you maintain accurate records of the purchasing and selling
of stock as well as stock options.
• You may have heard before that you should contribute the maximum to your 401(k)
retirement plan. Doing so will let you defer the taxes you pay on your contributions
and will allow your contributions to increase through compound interest.
• Adjust your withholding if your marital status changes or if you are in a different tax
bracket than the previous year. If sufficient taxes are not withheld from your
paychecks, or if you are self-employed, make estimated tax payments to the
appropriate tax authority to avoid year-end penalties.
• Make contributions to your IRA as early as possible in the year due to the benefits of
compound interest.
• Also, consider tax-efficient investments such as tax-free municipal bonds or tax-
efficient mutual funds.
Three Types of Indirect Taxation in India
Understanding international indirect tax requirements can be daunting, especially for
companies who are new to doing business in a country. India is one country that is
particularly challenging because not only are there several federal level indirect taxes on both
goods and services, but there are also state level value added taxes. India has twenty-nine
states and seven union territories, and each of these can have their own value added tax rate
and schedules, which include reduced rates and increased rates for specified goods.
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24. This introduction to India indirect taxation will provide general information on the Service
tax and the Central Sales Tax (CST), as well as the Value Added Tax which is administered
at the local level.
India Service Tax
The India Service Tax is 14.30% and is made up of several components, each of which must
show separately on a sales invoice. Both the education CESS and the secondary and higher
education CESS are a stated percentage of the service tax rate. The total tax rate then equals
12.36%. This rate has remained steady for several years, but can be increased by the Indian
Government if they choose to do so. This tax applies to nearly all services and is levied by
the Central Board of Excise and Customs (CBEC).
The tax rate is outlined as follows:
• India Service Tax (14% total)
• India Education CESS Tax 2%
• India Secondary and Higher Education 1%
Sourcing service transactions can be difficult since the rules for sourcing vary depending on
the type of service transaction involved. For example, while a service is generally sourced to
where the recipient of the service is located, this could change if the services being provided
are online services. In 2014,
More information regarding the Service Tax can be found on the Department of Revenue,
Ministry of Finance Indian Government website: http://www.servicetax.gov.in/.
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26. Central Sales Tax (CST)
The Central Sales Tax applies to the sale of goods between states, often referred to as
interstate sales. The CST rate charged on general sales is equal to the value added tax rate at
the ship-from location, often referred to as the originating state. There are special
circumstances under which the CST rate is fixed at 2%. Transactions taxable at 2% are those
that take place between registered dealers, and where a C Form is presented. The C Form is
issued to registered taxpayers by their state tax department.
The CST is administered and collected by the local sales tax authorities of each state. The
state in which the transaction commences collects this tax and keeps this tax.
Value Added Tax (VAT) for Indian States
Up until 2005, many Indian states administered a general sales tax. Beginning April 2005, all
Indian states slowly adopted Valued Added Tax Acts and Rules. The VAT system was
supposed to simplify the complexity of indirect taxes in India, but due to the continuation of
CST on interstate sales and the Service Tax on services, the new system did not necessarily
provide simplification.
In addition to the standard VAT rate, each state has adopted a variety of VAT Schedules
which specify goods that should be taxed at reduced rates or increased rates. For example,
bicycles and tricycles are often taxed at a reduced rate in a variety of states whereas luxury
items such as liquor are taxed at an increased rate in a variety of states.
VAT rates in Indian states range from reduced rates of 4% to increased rates of 30%.
Changes to these rates do occur and Taxware regularly monitors all jurisdictions in India to
insure all Indian rates and content in the Taxware Enterprise System are current.
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28. The Future of GST in India
GST stands for Goods and Services Tax, and is an attempt to simply the indirect taxation
scheme in India. Currently, as outlined above, there are three types of taxes that may be
applied to the transfer of goods and services throughout India. Each one of these taxes
requires different documentation and registration. From a compliance standpoint, this is very
difficult for businesses, and ultimately this difficulty lessens the amount of tax collected by
authorities.
When recently presenting the 2014-2015 budget, the Indian Finance Minister stated that the
government will work to introduce GST by the end of this year. Similar statements have been
made during the past five years, so it is unclear as to whether or not the introduction of GST
tax reform will take place by December 2014. Not all Indian states are onboard with the
introduction of GST because they fear they will not be adequately compensated by the Indian
government for the cost of implementation.
It will be exciting to see if the Goods and Services Tax gets implemented throughout India
later this year. This tax would make compliance remarkably easier for companies doing
business in India. Tax ware will continue to follow the implementation of the GST in India,
and if such scheme is adopted our content will be adjusted appropriately.
There are many more intricacies of India indirect taxation, but hopefully this general
introduction to Service Tax, Central Sales Tax, and the Value Added Tax was helpful.
Tax ware is Here to Help
For more information or to find out how we can help with timely tax rule changes, please
visit contact HYPERLINK "http://taxware.com/contact.php"Taxware or Ask the Tax
Expert today.
The regressively of indirect taxes is indeed a problem and is one of the reasons why
you will never see a country that relies solely on indirect taxation as it main means of
generating revenue.
However, I would like to point out that a system of indirect taxation in these days of
computerised systems is a wonderful enabler of efficiency in taxation i.e. curbing tax
evasion. Having said that, I am 100% certain, Bole land will not utilise the benefits of
this and continue to stumble along with its existing inefficiencies.
Indeed, efficiency is an obvious benefit of indirect taxation. It's impossible to evade an
indirect tax, unless the person you are buying goods from himself refuses to pay his taxes.
I don't think this necessarily justifies the use of indirect taxation, though. It certainly does not
bear much on my main point that indirect taxation is regressive. It actively discriminates
against the poor, and since the market already sufficiently does that (why else would these
people be poor?) it seems a bit cruel to kick a man while he's down.
It is true, though, that relatively, indirect taxation might be a more efficient way of raising
government revenue. Historically, indirect taxation was the way to go — as I understand it,
direct taxes only became prevalent relatively recently, in the 19th century.
When you think about it, this makes sense. In times of poor bookkeeping and unorganised
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29. government, implementing something like an income tax would have been ridiculously
impractical, unless you taxed the aristocracy — not exactly very conducive towards
maintaining power.
On the other hand, an indirect tax would make perfect sense. It was easy to enforce and
implement — rather than chasing down a few thousand consumers, all you had to do was to
find the dozen tax-evading sellers behind the problem of tax evasion.
The fact that direct taxation has become more and more prevalent recently indicates to me
that it is in fact a superior form of raising government revenue. Governments are notoriously
immune to market forces, but they are as susceptible to incentives as the next firm, and
increased revenue is about a good incentive as you can get for a bureaucracy to change.
That is not to say indirect taxes don't have their uses. If that were so, then they would no
longer be in use. The fact is, indirect taxes are especially helpful for certain problems, such as
dealing with negative externalities. (Pollution being one example.)
As for whether Malaysia will be able to effectively exploit indirect taxes, I am sure everyone
familiar with its problems will be skeptical. Certainly, I am not convinced of the merits
The regressivity of indirect taxes is indeed a problem and is one of the reasons why
you will never see a country that relies solely on indirect taxation as it main means of
generating revenue.
However, I would like to point out that a system of indirect taxation in these days of
computerised systems is a wonderful enabler of efficiency in taxation i.e. curbing tax
evasion. Having said that, I am 100% certain, Bolehland will not utilise the benefits of
this and continue to stumble along with its existing inefficiencies.
Advantages / Merits of Indirect Taxes ↓
The merits of indirect taxes are briefly explained as follows :-
1. Convenient
Indirect taxes are imposed on production, sale and movements of goods and services. These
are imposed on manufacturers, sellers and traders, but their burden may be shifted to
consumers of goods and services who are the final taxpayers. Such taxes, in the form of
higher prices, are paid only on purchase of a commodity or the enjoyment of a service. So
taxpayers do not feel the burden of these taxes. Besides, money burden of indirect taxes is not
completely felt since the tax amount is actually hidden in the price of the commodity bought.
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30. They are also convenient because generally they are paid in small amounts and at intervals
and are not in one lump sum. They are convenient from the point of view of the government
also, since the tax amount is collected generally as a lump sum from manufacturers or traders.
2. Difficult to evade
Indirect taxes have in built safeguards against tax evasion. The indirect taxes are paid by
customers, and the sellers have to collect it and remit it to the Government. In the case of
many products, the selling price is inclusive of indirect taxes. Therefore, the customer has no
option to evade the indirect taxes.
3. Wide Coverage
Unlike direct taxes, the indirect taxes have a wide coverage. Majority of the products or
services are subject to indirect taxes. The consumers or users of such products and services
have to pay them.
4. Elastic
Some of the indirect taxes are elastic in nature. When government feels it necessary to
increase its revenues, it increases these taxes. In times of prosperity indirect taxes produce
huge revenues to the government.
5. Universality
Indirect taxes are paid by all classes of people and so they are broad based. Poor people may
be out of the net of the income tax, but they pay indirect taxes while buying goods.
6. Influence on Pattern of Production
By imposing taxes on certain commodities or sectors, the government can achieve better
allocation of resources. For e.g. By Imposing taxes on luxury goods and making them more
expensive, government can divert resources from these sectors to sector producing necessary
goods.
7. May not affect motivation to work and save
The indirect taxes may not affect the motivation to work and to save. Since, most of the
indirect taxes are not progressive in nature, individuals may not mind to pay them. In other
words, indirect taxes are generally regressive in nature. Therefore, individuals would not be
demotivated to work and to save, which may increase investment.
8. Social Welfare
The indirect taxes promote social welfare. The amount collected by way of taxes is utilized
by the government for social welfare activities, including education, health and family
welfare. Secondly, very high taxes are imposed on the consumption of harmful products such
as alcoholic products, tobacco products, and such other products. So it is not only to check
their consumption but also enables the state to collect substantial revenue in this manner.
9. Flexibility and Buoyancy
The indirect taxes are more flexible and buoyant. Flexibility is the ability of the tax system to
generate proportionately higher tax revenue with a change in tax base, and buoyancy is a
wider concept, as it involves the ability of the tax system to generate proportionately higher
tax revenue with a change in tax base, as well as tax rates
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31. CHAPTER – 3
REVIEW OF LITERATURE
History of Taxation
What is Tax? The word tax is derived from the Latin word ‘taxare’ meaning to estimate. A
tax is not a voluntary payment or donation, but an enforced contribution, exacted pursuant to
legislative authority" and is any contribution imposed by government whether under the
name of toll, tribute, impost, duty, custom, excise, subsidy, aid,
supply, or other name.”1 The first known system of taxation was in Ancient Egypt around
3000 BC - 2800 BC in the first dynasty of the Old Kingdom. Records from that time show
that the pharaoh would conduct a biennial tour of the kingdom, collecting tax revenues from
the people. Other records are granary receipts on limestone flakes and papyrus. Early taxation
is also described in the Bible. In Genesis2, it states "But when the crop comes in, gives a
fifth of it to Pharaoh. The other four-fifths you may keep as seed for the fields and as food for
yourselves and your
households and your children." Joseph was telling the people of Egypt how to divide their
crop, providing a portion to the Pharaoh. A share3 of the crop was the tax. In India, the
tradition of taxation has been in force from ancient times. It finds its references in many
ancient books like 'Manu Smriti '4 and 'Arthasastra'. The Islamic rulers imposed jizya 5. It
was later on abolished by Akbar. However, Aurangzeb, the last prominent Mughal Emperor,
levied jizya on his mostly Hindu subjects in 1679. Reasons for this are cited to be financial
stringency and personal inclination on the part of the emperor, and a petition by the ulema 6.
The period of British rule in India witnessed some remarkable change in the whole taxation
system of India. Although, it was highly in favour of the British government and its
31 | P a g e

32. exchequer but it incorporated modern and scientific method of taxation tools and systems. In
1922, the country witnessed a paradigm shift in the overall Indian taxation system. Setting up
of administrative system and taxation system was first done by the Britishers. Broadly, there
are two types of Taxes viz. Direct7 and Indirect taxes8. Taxes in India are levied by the
Central Government and the State Governments. Some minor taxes are also levied by the
local authorities such as Municipality or Local Council. The authority to levy tax is derived
from the Constitution of India which allocates the power to levy various taxes between
Centre and State.
2. Major milestones in Indirect Tax reform
1974 Report of LK Jha Committee suggested VAT
1986 Introduction of a restricted VAT called MODVAT
1991 Report of the Chelliah Committee recommends VAT/GST and recommendations
accepted by Government
1994 Introduction of Service Tax
1999 Formation of Empowered Committee on State VAT
2000 Implementation of uniform floor Sales tax rates Abolition of tax related incentives
granted by States
2003 VAT implemented in Haryana in April 2003
2004 Significant progress towards CENVAT
2005-06 VAT implemented in 26 more states
2007 First GST stuffy released By Mr. P. Shome in January
2007 F.M. Announces for GST in budget Speech
2007 CST phase out starts in April 2007
2007 Joint Working Group formed and report submitted
2008 EC finalises the view on GST structure in April 2008
3. INTRODUCTION OF GST:-
Introduction of the Value Added Tax (VAT) at the Central and the State level has been
considered to be a major step – an important step forward – in the globe of indirect tax
reforms in India. If the VAT is a major improvement over the pre-existing Central excise
duty at the national level and the sales tax system at the State level, then the Goods and
Services Tax (GST) will indeed be an additional important perfection – the next logical step –
towards a widespread indirect tax reforms in the country. Initially, it was conceptualized that
32 | P a g e

33. there would be a national level goods and services tax, however, with the release of First
Discussion Paper by the Empowered Committee of the State Finance Ministers on
10.11.2009, it has been made clear that there would be a “Dual GST” in India, taxation power
– both by the Centre and the State to levy the taxes on the Goods and Services. Almost 150
countries have introduced GST in some form. While countries such as Singapore and New
Zealand tax virtually everything at a single rate, Indonesia has five positive rates, a zero rate
and over 30 categories of exemptions. In China, GST applies only to
goods and the provision of repairs, replacement and processing services. GST rates of some
countries are given below. Country Australia France Canada Germany Japan Singapore
Sweden New Zealand Rate of GST 10% 19.6% 5% 19% 5% 7% 25% 15% World over in
almost 150 countries there is GST or VAT, which means tax on goods and services. Under
the GST scheme, no distinction is made between goods and services for levying of tax. In
other words, goods and services attract the same rate of tax. GST is a multi-tier tax where
ultimate burden of tax fall on the consumer of goods/ services. It is called as value added tax
because at every stage, tax is being paid on the value addition. Under the GST scheme, a
person who was liable to pay tax on his output, whether for provision of service or sale of
goods, is entitled to get input tax credit (ITC) on the tax paid on its inputs.
4. OBJECTIVES OF GST:-
One of the main objectives of GST would be to eliminate the cascading impact of taxes on
production and distribution cost of goods and services. The exclusion of cascading effects i.e.
tax on tax will significantly improve the competitiveness of original goods and services
which leads to beneficial impact to the GDP growth. It is felt that the GST would serve a
superior reason to achieve the objective of streamlining indirect tax regime in India which
can remove cascading effects in supply chain till the level of final consumers only when all
such above mentioned indirect taxes are completely included in GST. It is understood that
alcohol, tobacco and petroleum products will not be enclosed by GST as alcohol and tobacco
are considered as Sin Goods, and governments do not like to allow free trade on these
properties.
5. CHALLENGES: -
5.1 With respect to Tax Threshold
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34. The threshold limit for turnover above which GST would be levied will be one area which
would have to be strictly looked at. First of all, the
threshold limit should not be so low to bother small scale traders and service providers. It
also increases the allocation of government resources for such a petty amount of revenue
which may be much more costly than the amount of revenue collected. The first impact of
setting higher tax threshold would naturally lead to less revenue to the government as the
margin of tax base shrinks; second it may have on such small and not so developed states
which have set low threshold limit under current VAT regime.
5.2 With respect to nature of taxes
The taxes that are generally included in GST would be excise duty, countervailing duty, cess,
service tax, and state level VATs among others. Interestingly, there are numerous other states
and union taxes that would be still out of GST.
5.3 With respect to number of enactments of statutes
There will two types of GST laws, one at a centre level called ‘Central GST (CGST)’ and the
other one at the state level - ‘State GST (SGST)’. As there seems to have different tax rates
for goods and services at the Central Level and at the State Level, and further division based
on necessary and other property based on the need, location, geography and resources of each
state.
5.4 With respect to Rates of taxation
It is true that a tax rate should be devised in accordance with the state’s necessity of funds.
Whenever states feel that they need to raise greater revenues to fund the increased
expenditure, then, ideally, they should have power to decide how to increase the revenue.
5.5 With respect to tax management and Infrastructure
It depends on the states and the union how they are going to make GST a simple one. Success
of any tax reform policy or managerial measures depends on the inherent simplifications of
the system, which leads to the high conformity with the administrative measures and policies.
Girish Garg, IJSRM volume 2 issue 2 feb 2014
6. OPPORTUNITIES: -
6.1 An end to cascading effects
This will be the major contribution of GST for the business and commerce. At present, there
are different state level and centre level indirect tax levies that are compulsory one after
another on the supply chain till the time of its utilization.
6.2 Growth of Revenue in States and Union
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35. It is expected that the introduction of GST will increase the tax base but lowers down the tax
rates and also removes the multiple point This, will lead to higher amount of revenue to both
the states and the union. 6.3 Reduces transaction costs and unnecessary wastages
If government works in an efficient mode, it may be also possible that a single registration
and single compliance will suffice for both SGST and CGST provided government produces
effective IT infrastructure and integration of such infrastructure of states level with the union.
6.4 Eliminates the multiplicity of taxation
One of the great advantages that a taxpayer can expect from GST is elimination of
multiplicity of taxation. The reduction in the number of taxation applicable in a chain of
transaction will help to clean up the current mess that is brought by existing indirect tax laws.
6.5 One Point Single Tax
Another feature that GST must hold is it should be ‘one point single taxation’. This also gives
a lot of comforts and confidence to business community that they would focus on business
rather than worrying about other taxation that may crop at later stage. This will help the
business community to decide their supply chain, pricing modalities and in the long run helps
the consumers being goods competitive as price will no longer be the function of tax
components but function of sheer business intelligence and innovation.
6.6 Reduces average tax burdens
Under GST mechanism, the cost of tax that consumers have to bear will be certain, and GST
would reduce the average tax burdens on the consumers.
6.7 Reduces the corruption
It is one of the major problems that India is overwhelmed with. We cannot expect anything
substantial unless there exists a political will to root it out. This will be a step towards
corruption free Indian Revenue Service.
7. Justification of GST:-
The introduction of GST at the Central level will not only include comprehensively more
indirect Central taxes and integrate goods and service taxes for the purpose of set-off relief,
but may also lead to revenue gain for the Centre through widening of the dealer base by
capturing value addition in the distributive trade and increased compliance. In the GST, both
the cascading effects of CENVAT and service tax are removed with set-off, and a constant
chain of set-off from the original producer’s point and service provider’s point up to the
retailer’s level is established which reduces the burden of all cascading effects. This is the
real meaning of GST, and this is why GST is not simply VAT plus service tax but an
improvement over the previous system of VAT and disjointed service tax. Moreover, with the
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36. introduction of GST, burden of Central Sales Tax (CST) will also be removed. The GST at
the State-level is, therefore, justified for-
(a) Additional power of levy of taxation of services for the States
(b) System of comprehensive set-off relief,
(c) Subsuming of several taxes in the GST
(d) Removal of burden of CST.
8. Dual GST
Girish Garg, IJSRM volume 2 issue 2 feb 2014 [www.ijsrm.in] Page 546
Dual GST means, the proposed model will have two part called
1. CGST – Central goods and service tax for levied by central Govt.
2. SGST – State goods and service tax levied by state Govt.
There would have multiple statute one CGST statute and SGST statute for every state.
9. Salient features of the GST model Salient features of the proposed model are as
follows:
(I) the GST shall have two components: one levied by the Centre (referred to as Central
GST), and the other levied by the States (referred to as State GST). Rates for Central GST
and State GST would be approved appropriately, reflecting revenue considerations and
acceptability.
(ii) The Central GST and the State GST would be applicable to all transactions of goods and
services made for a consideration except the exempted goods and services.
(iii) The Central GST and State GST are to be paid to the accounts of the Centre and the
States individually.
(iv) Since the Central GST and State GST are to be treated individually, taxes paid against
the Central GST shall be allowed to be taken as input tax credit (ITC) for the Central GST
and could be utilized only against the payment of Central GST.
(v) Cross utilization of ITC between the Central GST and the State GST would not be
permitted except in the case of inter-State supply of goods and services.
(vi) Ideally, the problem related to credit accumulation on account of refund of GST should
be avoided by both the Centre and the States except in the cases such as exports, purchase of
capital goods, input tax at higher rate than output tax etc.
(vii) To the extent feasible, uniform procedure for collection of both Central GST and State
GST would be prescribed in the respective legislation for Central GST and State GST.
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37. (viii) The States are also of the view that Composition/Compounding Scheme for the purpose
of GST should have an upper ceiling on gross annual turnover and a floor tax rate with
respect to gross annual turnover.
(ix) The taxpayer would need to submit periodical returns, in common format as far as
possible, to both the Central GST authority and to the concerned State GST authorities.
(x) Each taxpayer would be allotted a PAN-linked taxpayer identification number with a total
of 14/15 digits. This would bring the GST PAN-linked system in line with the prevailing
PAN-based system for Income tax, facilitating data exchange and taxpayer compliance.
10. Benefits of GST
1. GST provide comprehensive and wider coverage of input credit setoff, you can use service
tax credit for the payment of tax on sale of goods etc.
2. CST will be removed and need not pay. At present there is no input tax credit available for
CST.
3. Many indirect taxes in state and central level included by GST, You need to pay a single
GST instead of all . 4. Uniformity of tax rates across the states
5. Ensure better compliance due to aggregate tax rate reduces.
6. By reducing the tax burden the competitiveness of Indian products in international market
is expected to increase and there by development of the nation.
Girish Garg, IJSRM volume 2 issue 2 feb 2014
7. Prices of goods are expected to reduce in the long run as the benefits of less tax burden
would be passed on to the consumer.
11. Indirect taxes included under GST
The following indirect taxes from state and central level is going to integrated with GST
11.1 State taxes
1. VAT/Sales tax
2. Entertainment Tax (unless it is levied by local bodies)
3. Luxury tax
4. Taxes on lottery, betting and gambling.
5. State cesses and surcharges in so far as they relate to supply of goods and services.
6. Entry tax not on in lieu of octroi.
7. Purchase tax (This is not sure still under discussion)
11.2 Central Taxes
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38. 1. Central Excise Duty.
2. Additional Excise Duty.
3. The Excise Duty levied under the medical and Toiletries Preparation Act
4. Service Tax.
5. Additional Customs Duty, commonly known as countervailing Duty (CVD)
6. Special Additional duty of customs- (SAD)
7. Surcharges
8. Cesses The above taxes dissolve under GST; instead only CGST & SGST exists.
12. Applicability of CGST and SGST
The applicability of taxes is as usual there would be a prescribed limit of annual turnover,
also some goods and services are exempted under GST. Threshold for annual turnover for
goods and services would be 10 lakh for SGST and threshold of CGST for goods may be 1.5
crore and service would have a separate threshold that too will be appropriately high. It is
assumed that aggregate total of CGST & SGST would be 20%.
13. Impact of Goods and Service Tax
I. Food Industry
The application of GST to food items will have a significant impact on those who are living
under subsistence level. But at the same time, a complete exemption for food items would
drastically shrink the tax base. Food includes grains and cereals, meat, fish and poultry, milk
and dairy products, fruits and vegetables, candy and confectionary, snacks, prepared meals
for home consumption, restaurant meals and beverages. Even if the food is within the scope
of GST, such sales would largely remain exempt due to small business registration threshold.
Given the exemption of food from CENVAT and 4% VAT on food item, the GST under a
single rate would lead to a doubling of tax burden on food.
II. Housing and Construction Industry
In India, construction and Housing sector need to be included in the GST tax base because
construction sector is a significant contributor to the national economy.
III. FMCG Sector
Despite of the economic slowdown, India's Fast Moving Consumer Goods (FMCG) has
grown consistently during the past three – four years reaching to $25 billion at retail sales in
2008. Implementation of proposed GST and opening of Foreign Direct Investment (F.D.I.)
are expected to fuel the growth and raise industry's size to $95 Billion by 201835.
IV. Rail Sector
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39. Girish Garg, IJSRM volume 2 issue 2 feb 2014 [www.ijsrm.in] Page 548
There have been suggestions for including the rail sector under the GST umbrella to bring
about significant tax gains and widen the tax net so as to keep overall GST rate low. This will
have the added benefit of ensuring that all inter – state transportation of goods can be tracked
through the proposed Information technology (IT) network.
V. Financial Services
In most of the countries GST is not charged on the financial services. Example, In New
Zealand most of the services covered except financial services as GST. Under the service tax,
India has followed the approach of bringing virtually all financial services within the ambit of
tax where consideration for them is in the form of an explicit fee. GST also include financial
services on the above grounds only.
VI. Information Technology enabled services
To be in sync with the best International practices, domestic supply of software should also
attract G.S.T. on the basis of mode of transaction. Hence if the software is transferred through
electronic form, it should be considered as Intellectual Property and regarded as a service.
And if the software is transmitted on media or any other tangible property, then it should be
treated as goods and subject to G.S.T. 35 According to a FICCI – Technopak Report.
Implemtayion of GST will also help in uniform, simplified and single point Taxation and
thereby reduced prices.
VII. Impact on Small Enterprises
There will be three categories of Small Enterprises in the GST regime.
Those below threshold need not register for the GST
Those between the threshold and composition turnovers will have the option to pay a
turnover based tax or opt to join the GST regime.
Those above threshold limit will need to be within framework of GST Possible downward
changes in the threshold in some States consequent to the introduction of GST may result in
obligation being created for some dealers. In this case considerable assistance is desired. In
respect of Central GST, the position is slightly more complex. Small scale units
manufacturing specified goods are allowed exemptions of excise up to Rs. 1.5 Crores. These
units may be required to register for payment of GST, may see this as an additional cost.
14. CONCLUSION:-
GST is the most logical steps towards the comprehensive indirect tax reform in our country
since independence. GST is leviable on all supply of goods and provision of services as well
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40. combination thereof. All sectors of economy whether the industry, business including Govt.
departments and service sector shall have to bear impact of GST. All sections of economy
viz., big, medium, small scale units, intermediaries, importers, exporters, traders,
professionals and consumers shall be directly affected by GST... One of the biggest taxation
reforms in India -- the Goods and Service Tax (GST) -- is all set to integrate State economies
and boost overall growth. GST will create a single, unified Indian market to make the
economy stronger. Experts say that GST is likely to improve tax collections and Boost
India’s economic development by breaking tax barriers between States and integrating India
through a uniform tax rate. Under GST, the taxation burden will be divided equitably
between manufacturing and services,
CHAPTER-4
SCOPE OBJECTIVES &
LIMITATIONS
Scope / Objectives
Keeping in view a comprehensive indirect tax reforms in the country, an announcement was
made by the then Union Finance Minister in the Central Budget (2007-08) to the effect that
GST would be introduced with effect from April 1, 2010 and that the Empowered Committee
of State Finance Ministers, on his request, would work with the Central Government to
prepare a road map for introduction of GST in India. After this announcement, the
Empowered Committee of State Finance Ministers decided to set up a Joint Working Group
(May 10, 2007), with the then Adviser to the Union Finance Minister and Member-Secretary
of the Empowered Committee as its Co-convenors and concerned four Joint Secretaries of the
40 | P a g e

41. Department of Revenue of Union Finance Ministry and all Finance Secretaries of the States
as
its members. This Joint Working Group got itself divided into three Sub-Groups and had
several rounds of internal discussions as well as interaction with experts and representatives
of Chambers of Commerce & Industry. On the basis of these discussions and interaction, the
Sub-Groups submitted their reports which were then integrated and consolidated into the
report of Joint Working Group (November 19, 2007).
This report was discussed in detail in the meeting of the Empowered Committee on
November 28, 2007, and the States were also requested to communicate their observations on
the report in writing. On the basis of these discussions in the Empowered Committee and the
written observations, certain modifications were considered necessary and were discussed
with the Co-convenors and the representatives of the Department of Revenue of Union
Finance Ministry. With the modifications duly made, a final version of the views of
Empowered Committee on the model and road map for the GST was prepared (April 30,
2008). These views of Empowered Committee were then sent to the Government of India,
and the comments of Government of India were received on December 12, 2008. These
comments were duly considered by the Empowered Committee (December 16, 2008), and it
was decided that a Committee of Principal Secretaries/Secretaries of Finance/Taxation and
Commissioners of Trade Taxes of the States would be set up to consider these comments, and
submit their views. These views were submitted and were accepted in principle by the
Empowered Committee (January 21, 2009). As a follow-up of this in-principle acceptance, a
Working Group consisting of the concerned officials of the State Governments was formed
who, in association with senior representatives of Government of India, submitted their
recommendations in detail on the structure of GST. An important interaction has also recently
taken place between Shri Pranab Mukherjee, the Union Finance Minister and the Empowered
Committee (October 19, 2009) on the related issue of compensation for loss of the States on
account of phasing out of CST. The Empowered Committee has now taken a detailed view on
the recommendations of the Working Group of officials and other related matters. This
detailed view is now presented in terms of the First Discussion Paper, along with an
Annexure on Frequently Asked Questions and Answers on GST, for discussion with industry,
trade, agriculture and people at large. Since the GST at the Centre and States would be a
further improvement over the VAT, a brief recalling of the process of introduction of VAT in
India is worthwhile.
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42. CHAPTER-5
RESEARCH METHODOLOGY
5.1 Research Methodology
5.1.1 Research
Research in common parlance refers to a research for knowledge. It is also defined as a
scientific and systematic search for pertinent information collection on a specific topic. In
fact it is an art of scientific investigation. Research is not only concerned to the decision of
the fact but also building up to date knowledge and to discover the new facts involved
through the process of dynamic change in the society.
5.1.2 Research Plan
The research study is exploratory in nature. The established objectives were kept in mind
during the study, however no hypothesis was formed as the study was more in the form of
descriptive design attempting to analyse the attitude of respondents towards the project.
5.1.3 Research methodology
Research methodology is the process used to collect the data and others types of information
for use in making business decisions. Examples of these types of methodology include
interviews, surveys and research of publications. All of these types include the use of present
and historical information.
5.1.4 Modes of Data Collection
The study is based on primary and secondary data which includes
Primary Data – Primary data is collected from the employees of the ThinkNEXT
Technologies PVT.LTD. Mohali
Secondary Data – Secondary data was gathered from books and journals and Financial
Statements of the ThinkNEXT Technologies PVT.LTD. Mohali
42 | P a g e

43. 5.2 LIMITATIONS OF THE STUDY:
• We cannot do comparisons with other companies unless and until we
have the data of other companies on the same subject.
• Only the printed data about the company will be available and not the
back–end details.
• Future plans of the company will not be disclosed to the trainees.
• Lastly, due to shortage of time it is not possible to cover all the factors
and details regarding the subject of study.
• The latest financial data could not be reported as the company’s websites
have not been updated.
DATA PROVIDED FOR STUDY AND TO ENHANCE OUR
KNOWLEDGE
Introduction (Central Sales Taxes)
• Certain amendments were made in the Constitution through the Constitution (Sixth
Amendment) Act, 1956 whereby-
• a) Taxes on sales or purchases of goods in the course of inter-State trade or commerce
were brought expressly within the purview of the legislative jurisdiction of
Parliament;
b) Restrictions could be imposed on the powers of State legislatures with respect to
the levy of taxes on the sale or purchase of goods within the State where the goods are
of special importance in inter-State trade or commerce.
c) This amendment also authorized Parliament to formulate principles for
determining when a sale or purchase takes place in the course of inter-State trade
or commerce or in the course of export or import or outside a State.
Accordingly the Central Sales Tax (CST) Act, 1956 was enacted which came into
force on 05.01.1957. Originally, the rate of CST was 1%, which was increased
first to 2%, then to 3% and w.e.f. 1st July, 1975 to 4%. The CST Act, 1956 Act
provides for declaration of certain goods to be of special importance in inter-State
trade or commerce and lay down restrictions on the taxation of such items. The
entire revenue accruing under levy of CST is collected and kept by the State in
which the sale originates. The Act excludes taxation of imports and exports.
CST being an origin based tax, is inconsistent with Value Added Tax which is a
destination based tax with inherent input tax credit refund. An amendment to
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44. theCentral Sales Tax Act to provide for reduction of the rate of Central Sales Tax
for inter-State sales between registered dealers from 4% to 3% w.e.f. 1st April,
2007 was effected in. Through this amendment, facility of inter-State purchases
by Government Departments at concessional CST rate, against Form-D has been
withdrawn. After this amendment, the rate of CST on inter-State sales to
Government will be same as VAT/ State sales tax rate.
Central Sales Tax rate has been further reduced from 3% to 2% with effect from
1st June, 2008. Reduction of CST rate first from 4% to 3% & then from 3% to 2%
has been done as a precursor to the introduction of Goods & Services Tax (GST),
as CST would be inconsistent with the concept & design of GST.
CST Forms
1. CST 1
This form of return is made under Rule 7A of the Central Sales Tax
Punjab Rule no 1957. This form showing the detail of total sale and purchase of
the company.
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45. 91
##
CST-1
Please tick if you want to give zero figures for all columns :
SNo. AMOUNT(Rs.)
362075
0
0
0
362075
362075
0
362075
0
0
0
5 362075
6 AMOUNT(Rs.)
0
0
0
0
0
7
SNo. Taxable At % Rs. On which Tax
Amount To (Rs.)
1 0.00 0 0
7A
8 0 0
9
SNo. Number Date
(dd/mm/yyyy)
Amount(Rs.) Bank Name
1 0
0
0
0
Remarks (if any)
TAX PAID IF ANY BY MEANS OF TREASURY CHALLAN/CHEQUE/DRAFT
(i) BALANCE DUE, IF ANY
Total :
(ii) EXCESS PAID, IF ANY
B
TAX WISE BREAKUP OF SALES
TOTAL TAX PAYABLE ON Rs. AMOUNT OF Rs.
Sold Otherwise
Add: Any other Tax amout(due to
rounding off)
10
Declared Goods:
(i) Sold to registered dealers on prescribed declaration-vide declaration attached
(ii) Sold Otherwise
Other Goods:
Sold to registered Dealers on prescribed declaration-vide declaration attached
3
4
Balance Turnover on Interstate Sales
Deduct:
(i) Turnover of Interstate Sale of Goods unconditionally exempt from Tax under the Punjab general Sale Tax Act 1948
Balance: Total Turnover on Interstate Sales
A
GOODS WISE BREAKUP OF ABOVE
SALES DETAILS
Gross Amount Receivable by Dealer
Deduct:
(ii) Turnover of Sale of Goods returned by the purchaser within a period of three months under rule 11(2)(b)of the Central
Sales Tax(Registration & Turnover)Rule 1957
(iii) Turnover in respect of subsequent sales falling under clause(a) and (b)of section 6(2)A of the Act
Balance Taxable Turnover in respect of Interstate Sales
1
(i) Sales of Goods Outside the State(as defined in Sec.4 of the Act)
(ii) Sales of Goods Outside the State(as defined in Sec.5 of the Act)
(iii) Turnover of Goods transferred outside State[as referred in Section 6-A(2)]
Cost or Freight Delivery or Installation when such cost is separately charged
Deduct:
Form of Return Under Rule 7A of the Central Sales Tax Pb Rule 1957
Deduct:
Balance Turnover on Interstate Sale within the State2
Turnover of Sales within the State
ADD ROW DELETE ROW
ADD ROW DELETE ROW
VALIDATE UNLOCK FIELDS NEXTBACK INDEX SHEET45 | P a g e

46. Introduction (Value Added Tax)
• Introduction of State VAT is an important and recent reform measure at State level.
The State VAT has replaced the earlier Sales Tax systems of the States. VAT, being a
‘tax on sale or purchase of goods within a State’ is a State Subject by virtue of Entry
54 of State List of the Seventh Schedule of the Constitution of India.
• Since VAT/Sales tax is a State subject, the Central Government has been playing the
role of a facilitator for successful implementation of VAT. Some of the steps taken by
the Central Government in this regard are as follows:
• A package for payment of compensation to States for any revenue loss on account of
introduction of VAT has been implemented. Financial support under Mission Mode
Project (MMP) is being provided to States/UTs in order to enable them to take up
computerization of their Commercial Tax Departments. A separate project for
computerization of Commercial tax administration of Himachal Pradesh and Jammu
& Kashmir has also been sanctioned. 50% funding is being provided to the
Empowered Committee of State Finance Ministers for implementation of the
TINXSYS Project for tracking of inter-State transactions.
Modified Value Added tax (MODVAT)
The year 1986 was a landmark in the history of excise taxation in India when the government
introduced . MODVAT is different from the VAT system as it rakes into account the duty
paid while calculating the taxes to be paid by the producers. MODVAT system permits the
producers to obtain complete reimbursement of excise duty that is already paid on the
components and raw materials purchased by them used in the manufacturer of the producers.
It was passed in the Indian budget of that session.
Objectives of MODVAT
• The objective of MODVAT scheme is to avoid repeated payment of duties from raw
material stage to the final product stage.
• The objective of MODVAT is to avoid payment of tax at different stages of excise
duties.
• It is to simplify and rationalize the tax procedure.
Advantages of MODVAT
• MODVAT scheme benefits those producers who use indigenous raw materials and
intermediate goods rather than the producers who use imported materials.
• MODVAT also helps in shifting the effective burden of excise duties away from
inputs and on to the final products.
• MODVAT is expected to curb tax evasion. It will check the excise evasion as the
credit of input cannot be claimed unless actual production of goods are displayed to
the excise authorities.
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47. • Under the MODVAT system, a simplified procedure for obtaining tax concession has
been laid down.
• MODVAT is expected to reduce the cost of production, encourage ancillarization and
help in increasing the exports.
• MODVAT scheme is expected to encourage exports by removing the duty drawbacks
and thereby making them more competitive.
• MODVAT scheme makes excise levies transparent so that the effective rate of
taxation on a particular commodity can be known. Let us hope that it will be much
more transparent when the Jan HYPERLINK
"http://indiastudychannel.com/resources/139716-Jan-lokpal-bill.aspx"Lokpal
HYPERLINK "http://indiastudychannel.com/resources/139716-Jan-lokpal-
bill.aspx" bill is passed.
Drawbacks of MODVAT
• The implementation of MODVAT requires a sound administrative structure.
• MODVAT may encourage unscrupulous traders to create false purchase invoices
showing tax paid by other firms. It is perhaps the result of corruption in India that all
the traders are able to evade taxes evry easily.
• The problem of maintaining accounts, cross checking becomes complex when the
series contains a lot of exemptions ad differential rates of taxation.
• The system may not be effective in India since speculative hoarding and price hike
resulting form the lack of competition and existence of anomaly.
0
1
2
3
4
5
6
VAT FORMS
7
8 1. VAT 15 & ENCLOSURES
0 VAT 15 is to be required to filled return on quarterly basis&
submitted to State Government.
1
47 | P a g e

48. version 4.6
2015-16
Interstate Sales (VAT 18) Disable VAT-18
Interstate Purchases (VAT 19) Disable VAT-19
CST Return (CST-1) Disable CST-1
Local Sales (VAT 23) Disable VAT-23
Local Purchases (VAT 24) Disable VAT-24
Worksheets of VAT 15
After filling and validating all above forms click on button below to check and generate filled up VAT-15 form
Version : 4.6
Last Updated : 30th JUN'2015
FINANCIAL YEAR*
NAME* THINKNEXT TECHNOLOGIES PVT. LTD. STATE
FAX
PUNJAB
ADDRESS* SCF 113, 2ND FLOOR ,PHASE-XI,MOHALI
VAT-15 & ENCLOSURES
DEALER DETAILS
TIN* 03362166544 PERIOD(QUARTER)* 1st Qtr (Apr-Jun)
AAECT1486G
Declare : I hereby declare that I have checked the filled VAT 15 & All enclosures. The statements made and particulars furnished therein
are true and complete.
LIST OF ENCLOSURES
PIN*
TELEPHONE*
160062
01724656197
E-MAIL* mittalmanish@gmail.com
PAN*
VALIDATE CREATE FILE FOR UPLOAD NEXT
VAT-18
VAT-19
VAT-23
VAT-24
CST-1
WORKSHEETS
VAT-15
VALIDATE ALL FORMS
Central Value added tax (CENVAT)
Prior to 2001, there existed a number of ad-valorem rates of basic excise duty for different
excisable items. An important step in the direction of reform of excise taxation was taken
with the introduction of a single rate Central Value added tax by replacing the three ad-
48 | P a g e

49. valoremates with a single rate of 16%.
CENVAT scheme rationalized the excise duty by introducing only one ad-valorem rate in
place of a number of rates.In addition, CENVAT scheme further rationalized and expanded
the MODVAT scheme in the sense that now all,the inputs and capital goods are included in
the eligible list of MODVAT.
Progressive taxation
A tax is called progressive when the rate of taxation increases by the increase in the rate of
income. In other words, the lower income is taxes less as compared to the higher income. For
example, up to Rs.50000 a year may b taxes at the rate of 20% and the higher income may be
taxes at the rate of 22%.
Merits of progressive taxation
• Equitable: An important advantages of progressive taxation is that it leads to
equitable and just distribution of taxes as it is based on the principle of ability to pay.
• Instrument for reducing inequalities: Progressive taxation serves as the instrument for
reducing inequalities of income and wealth as the rich persons are requires to pay
more taxes.
• Elastic: Progressive taxes are elastic as the revenue of the government can increase
substantially by
Details about service tax
What is service tax?
A tax levied by Government of India on services provided in India by service providers is
known as service tax. The service tax is applicable on all services apart from the ones
included in the negative list of services. Currently, the Indian service tax rate is 12.36%
which is applicable on gross value of the service.
Who is eligible to pay service tax?
If you are providing some service to the people for which you charge certain amount or fees,
then, such a service may be subjected to service tax. The service tax rate is decided by the
Government of India and one has to pay service tax according to it. The service provider
collects some service tax from the end-consumers as well and pays the applicable amount to
the government. This is the reason why customers who are not service providers have to pay
little extra amount for availing food services at restaurants, room stay services at the hotels
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50. 1. Constitutional & Legal Provisions Behind levy of
Service Tax in India.
Constitutional Validity
Article 265 of the Constitution lays down that no tax shall be levied or collected except by
the authority of law. Schedule VII divides this subject into three categories-
a) Union list (only Central Government has power of legislation)
b) State list (only State Government has power of legislation)
c) Concurrent list (both Central and State Government can pass legislation).
To enable Parliament to formulate by law principles for determining the modalities of levying
the Service Tax by the Central Govt. and collection of the proceeds thereof by the Central
Govt. and the State, the amendment vide Constitution (92nd
amendment) Act, 2003 has been
made. Consequently, new article 268 A has been inserted for Service Tax levy by Union
Govt., collected and appropriated by the Union Govt., and amendment of seventh schedule to
the constitution, in list I-Union list after entry 92B, entry 92C has been inserted for taxes on
services as well as in article 270 of the constitution the clause (1) article 268A has been
included.
Concept Note on GST
1.Introduction
The Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014, seeks to amend
the Constitution of India to facilitate the introduction of Goods and Services Tax (GST) in the
country. The proposed amendments in the Constitution will confer powers both to the
Parliament and the State legislatures to make laws for levying GST on the supply of goods
and services on the same transaction.
2. Rationale behind moving towards GST:
2.1 Presently, the Constitution empowers the Central Government to levy excise duty on
manufacturing and service tax on the supply of services. Further, it empowers the State
Governments to levy sales tax or value added tax (VAT) on the sale of goods. This exclusive
division of fiscal powers has led to a multiplicity of indirect taxes in the country. In addition,
central sales tax (CST) is levied on inter-State sale of goods by the Central Government, but
collected and retained by the exporting States. Further, many States levy an entry tax on the
entry of goods in local areas./p>
2.2 This multiplicity of taxes at the State and Central levels has resulted in a complex indirect
tax structure in the country that is ridden with hidden costs for the trade and industry. Firstly,
there is no uniformity of tax rates and structure across States. Secondly, there is cascading of
taxes due to ‘tax on tax’. No credit of excise duty and service tax paid at the stage of
manufacture is available to the traders while paying the State level sales tax or VAT, and
vice-versa. Further, no credit of State taxes paid in one State can be availed in other States.
50 | P a g e

51. Hence, the prices of goods and services get artificially inflated to the extent of this ‘tax on
tax’.
2.3 The introduction of GST would mark a clear departure from the scheme of distribution of
fiscal powers envisaged in the Constitution. The proposed dual GST envisages taxation of the
same taxable event, i.e., supply of goods and services, simultaneously by both the Centre and
the States. Therefore, both Centre and States will be empowered to levy GST across the value
chain from the stage of manufacture to consumption. The credit of GST paid on inputs at
every stage of value addition would be available for the discharge of GST liability on the
output, thereby ensuring GST is charged only on the component of value addition at each
stage. This would ensure that there is no ‘tax on tax’ in the country.
2.4 GST will simplify and harmonise the indirect tax regime in the country. It is expected to
reduce cost of production and inflation in the economy, thereby making the Indian trade and
industry more competitive, domestically as well as internationally. It is also expected that
introduction of GST will foster a common or seamless Indian market and contribute
significantly to the growth of the economy.
2.5 Further, GST will broaden the tax base, and result in better tax compliance due to a robust
IT infrastructure. Due to the seamless transfer of input tax credit from one stage to another in
the chain of value addition, there is an in-built mechanism in the design of GST that would
incentivize tax compliance by traders.
3. Salient features of proposed GST:
3.1 Dual GST: Both Centre and States will simultaneously levy GST across the value chain.
Tax will be levied on every supply of goods and services. Centre would levy and collect
Central Goods and Services Tax (CGST), and States would levy and collect the State Goods
and Services Tax (SGST) on all transactions within a State. The input tax credit of CGST
would be available for discharging the CGST liability on the output at each stage. Similarly,
the credit of SGST paid on inputs would be allowed for paying the SGST on output. No cross
utilization of credit would be permitted.
3.2 Inter-State Transactions and the IGST Mechanism: The Centre would levy and
collect the Integrated Goods and Services Tax (IGST) on all inter-State supply of goods and
services. The IGST mechanism has been designed to ensure seamless flow of input tax credit
from one State to another. The inter-State seller would pay IGST on the sale of his goods to
the Central Government after adjusting credit of IGST, CGST and SGST on his purchases (in
that order). The exporting State will transfer to the Centre the credit of SGST used in
payment of IGST. The importing dealer will claim credit of IGST while discharging his
output tax liability (both CGST and SGST) in his own State. The Centre will transfer to the
importing State the credit of IGST used in payment of SGST.
3.3 Destination-Based Consumption Tax: GST will be a destination-based tax. This implies
that all SGST collected will ordinarily accrue to the State where the consumer of the goods or
services sold resides.
3.4 Central Taxes to be subsumed:
• i. Central Excise Duty
• ii. Additional Excise Duty
• iii. The Excise Duty levied under the Medicinal and Toiletries Preparation Act
• iv. Service Tax
• v. Additional Customs Duty, commonly known as Countervailing Duty (CVD)
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52. • vi. Special Additional Duty of Customs-4% (SAD)
• vii. Cesses and surcharges in so far as they relate to supply of goods and services.
3.5 State Taxes to be subsumed:
• i. VAT/Sales Tax
• ii. Central Sales Tax (levied by the Centre and collected by the States)
• iii. Entertainment Tax
• iv. Octroi and Entry Tax (all forms)
• v. Purchase Tax
• vi. Luxury Tax
• vii. Taxes on lottery, betting and gambling
• viii. State cesses and surcharges in so far as they relate to supply of goods and
services.
3.6 All goods and services, except alcoholic liquor for human consumption, will be brought
under the purview of GST.
• i. Petroleum and petroleum products have been constitutionally included as ‘goods’
under GST. However, it has also been provided that petroleum and petroleum
products shall not be subject to the levy of GST till notified at a future date on the
recommendation of the GST Council. The present taxes levied by the States and the
Centre on petroleum and petroleum products, viz. Sales Tax/VAT and CST by the
States, and excise duty the Centre, will continue to be levied in the interim period.
• ii. Taxes on tobacco and tobacco products imposed by the Centre shall continue to be
levied over and above GST.
• iii. In case of alcoholic liquor for human consumption, States would continue to levy
the taxes presently being levied, i.e., State Excise Duty and Sales Tax/VAT.
3.7 GST Council: In the GST regime, a Goods and Services Tax Council is being created
under the Constitution. The GST Council will be a joint forum of the Centre and the States.
This Council would function under the Chairmanship of the Union Finance Minister and will
have Minister in charge of Finance/Taxation or Minister nominated by each of the States &
UTs with Legislatures, as members. The Council will make recommendations to the Union
and the States on important issues like tax rates, exemption list, threshold limits, etc. The
recommendations made by this Council will act as benchmark or guidance to Union as well
as State Governments. One-half of the total number of Members of the Council will
constitute the quorum of GST council. Every decision of the Council shall be taken by a
majority of not less than three-fourths of the weighted votes of the members present and
voting in accordance with the following principles:-
• i. The vote of the Central Government shall have a weightage of one-third of the total
votes cast, and
• ii. The votes of all the State Governments taken together shall have a weightage of
two-thirds of the total votes cast in that meeting..
This is to protect the interests of each State and the Centre when the Council takes a decision
and is in the spirit of co-operative federalism.
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53. 3.8 Floor rates of GST with band: GST rates will be uniform across the country. However,
to give fiscal autonomy to the States and the Centre, there will a provision of a tax band over
and above the rate of the floor rates of CGST, SGST and IGST. Initially, the rates of CGST,
SGST and IGST are expected to be closely aligned to the Revenue Neutral Rates (RNR) of
the Centre and the States.
3.9 Goods and Services Tax Network (GSTN): A not-for-profit, Non-Government
Company called Goods and Services Tax Network (GSTN), jointly set up by the Central and
State Governments will provide shared IT infrastructure and services to the Central and State
Governments, tax payers and other stakeholders.
3.10 GST Compensation: Due to a shift from origin based to destination based indirect tax
structure, some States might face drop in revenue in the initial years. To help the States in
this transition phase, the Centre has committed to compensate all their losses for a period of 5
years. Accordingly, clause 19 has been inserted in the Constitution (122nd) Amendment Bill,
2014 to provide for compensation to States by law, on the recommendation of the Goods and
Services Tax Council, for loss of revenue arising on account of implementation of the goods
and services tax for a period of five years.
4. Salient features of the Constitution (122nd) Amendment Bill, 2014: The salient features
of the GST Bill as introduced in the Lok Sabha are as follows:-
• i. subsuming of various Central indirect taxes and levies such as Central Excise Duty,
Additional Excise Duties, Excise Duty levied under the Medicinal and Toilet
Preparations (Excise Duties) Act, 1955, Service Tax, Additional Customs Duty
commonly known as Countervailing Duty, Special Additional Duty of Customs, and
Central Surcharges and Cesses so far as they relate to the supply of goods and
services;
• ii. subsuming of State Value Added Tax/Sales Tax, Entertainment Tax (other than the
tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected
by the States), Octroi and Entry tax, Purchase Tax, Luxury tax, Taxes on lottery,
betting and gambling; and State cesses and surcharges in so far as they relate to
supply of goods and services;
• iii. dispensing with the concept of ‘declared goods of special importance’ under the
Constitution;
• iv. levy of Integrated Goods and Services Tax on inter-State transactions of goods and
services;
• v. levy of an additional tax on supply of goods, not exceeding one per cent. in the
course of inter-State trade or commerce to be collected by the Government of India
for a period of two years, and assigned to the States from where the supply originates;
• vi. conferring simultaneous power upon Parliament and the State Legislatures to make
laws governing goods and services tax;
• vii. coverage of all goods and services, except alcoholic liquor for human
consumption, for the levy of goods and services tax. In case of petroleum and
petroleum products, it has been provided that these goods shall not be subject to the
levy of Goods and Services Tax till a date notified on the recommendation of the
Goods and Services Tax Council.
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54. • viii. compensation to the States for loss of revenue arising on account of
implementation of the Goods and Services Tax for a period which may extend to five
years;
• ix. creation of Goods and Services Tax Council to examine issues relating to goods
and services tax and make recommendations to the Union and the States on
parameters like rates, exemption list and threshold limits. The Council shall function
under the Chairmanship of the Union Finance Minister and will have the Union
Minister of State in charge of Revenue or Finance as member, along with the Minister
in-charge of Finance or Taxation or any other Minister nominated by each State
Government. It is further provided that every decision of the Council shall be taken by
a majority of not less than three-fourths of the weighted votes of the members present
and voting in accordance with the following principles:—
• a. the vote of the Central Government shall have a weightage of one-third of the total
votes cast, and
• b. the votes of all the State Governments taken together shall have a weightage of
two-thirds of the total votes cast in that meeting.
• x. levy of an additional non-vatable tax on supply of goods of not more than 1% in the
course of inter-State trade or commerce, for a period not exceeding 2 years, or such
other period as the GST Council may recommend, to protect the interests of the
producing/manufacturing States. This additional tax on supply of goods will be levied
and collected by the Government of India, over and above the IGST levied under the
proposed Article 269A (1). This tax shall be assigned to the States from where such
supplies originate.
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55. CHAPTER-6
TAX DEDUCTION AT
SOURCE
Procedure For e-filing Of TDS Returns
1. Objective: The basic objectives of computerization of TDS returns is to cut down the
compliance cost for deductors, to correlate deduction of taxes made by deductors with the
deposit of the deducted tax in the Government account in a designated bank/and correlate
deduction of tax by the deductors with the corresponding credits claimed by the deductees.
In phase-I of TIN it is proposed to receive the electronic TDS returns of corporate deductors
and to digitise the paper TDS returns of other deductors. In Phase-II of TIN the work relating
to dematerialization of TDS certificates will be taken up so that cross verification of
deduction by the Deductors with the claims of deductees can be carried out. Some of the
issues pertaining to this scheme are explained in the form of Frequently Asked Questions
(FAQs) and are available on this site.
2. Scheme for Electronic Filing of TDS returns: The scheme for electronic filing of TDS
returns was notified on 26.8.2003. The Board Circular No.8 dated 19.9.2003 clarifies the
procedure in this regard. The procedure basically envisages that corporate deductors will
prepare their TDS returns in the new TDS return Forms 24, 26 or 27, according to the data
structure notified by e-Filing Administrator. The e-TDS returns in the prescribed data
structure stored on CD ROM and supported by a duly signed control chart in Form 27A in
paper format will be submitted to an e-TDS Intermediary appointed by the Board .
3. e-TDS Administrator and e-TDS Intermediary: The CBDT has appointed Director General
of Income-tax (Systems) as e-TDS Administrator. Separately, M/s National Securities
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56. Depository Limited (NSDL), who are also the agency hosting TIN, have been appointed as e-
TDS Intermediary. During the current financial year, NSDL will be opening their front
offices at 42 stations throughout the country, for receiving e-TDS returns of all deductors.
NSDL w.e.f. 19.01.2004 will set up their front offices called as ‘TIN Facilitation Centre’ at
42 stations throughout the country, for receiving e-TDS returns w.e.f. 19.01.2004. NSDL will
set up their front offices at 65 stations more during the next financial year so that they will
have presence at all stations where administrative CsIT are located.
4. Procedure for allotment of TAN: 4.1 All deductors required to e-file their TDS returns
have to quote their reformatted Tax Deduction Account Numbers (TAN) in their respective
TDS
returns. A large number of deductors have already obtained these re-formatted TANs which
are unique countrywide. Wherever TAN has not been allotted or old TANs have not been
reformatted, applications in Form 49B can be filed with NSDL. All old applications for
allotment of new TAN/ reformatted TAN pending in the Department, will be disposed at the
earliest.
4.2 NSDL has also been authorised to receive applications (form 49B)for allotment of TAN
at their front offices for fee of Rs.50/- to be paid by the applicant to them. The data in respect
of such TAN applications will be entered by NSDL and sent to National Computer Centre
(NCC) of Income-tax Department and the respective computer centres on-line . The
allotment of TAN will be done by the IT department centres and communicated online to
NSDL who will intimate the same to the applicant.
5. Preparation of e-TDS returns: 5.1 New forms of TDS returns in Form No.24, 26, & 27
(enclosed herewith), a control chart in Form 27A have been notified by the Board vide
notification dated 31.7.2003 consequent upon amendment to Rule 30 of IT Rules, 1962. The
e-TDS returns have to be prepared in these new forms and according to the data structure
prescribed by e-TDS administrator. This is necessary so that the data structure of e-TDS
returns is compatible with the departmental application software for processing the same.
5.2 The prescribed data structure can be downloaded from this website as also of NSDL
(http://tin.nsdl.com) This can also be obtained from the front offices of NSDL. While
preparing the e-TDS returns, the deductor has to ensure that following mandatory
requirements listed in Circular No.8 of CBDT dated 19.9.2003, are complied with :
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57. (i) Tax deduction Account Number (TAN) of the deductor is clearly mentioned in the TDS
return as also on Form No.27A, as required by sub-section (2) of section 203A of the Income-
tax Act. However, in cases where TAN is not available the e-TDS returns will also be
accepted if the same is accompanied with an application in Form 49B for allotment or for
reformatting. (ii) Full particulars relating to deposit of tax deducted at source, in the
designated bank are correctly and properly filled in the table at item No.6 of Form No.24 or
item No.5 of Form No.26 or item No.5 of Form No.27, as the case may be. (iii) The data in
the e-TDS return is as per the data structure prescribed by the e-Filing Administrator. (iv) The
Control Chart in Form 27A is duly filled in all columns, signed and enclosed in paper form
with the return on computer media.
(v) The Control Totals of the amount paid and the tax deducted at source as mentioned at
item No.3 of Form No. 27A tally with the corresponding totals in the e-TDS return in Form
No. 24 or Form No. 26 or Form No. 27, as the case may be.
In case any of these mandatory requirements are not fulfilled, the e-TDS return will not be
received by the e-TDS intermediary.
5.3 The deductors should prepare their e-TDS return as per the above procedure, store the
data on a CD ROM, enclose the control chart (Form 27A in paper format) and submit these at
any of the front offices of NSDL. Although the scheme permits e-TDS returns to be prepared
on a floppy, it would be preferable that these are prepared on a CD ROM to avoid any loss of
data, viruses etc.
6. Filing of e-TDS returns: 6.1 The e-TDS return can be filed at any of the TIC Facilitaion
Centres offices being opened by NSDL at 42 cities. At the receipt stage, these front offices
will carryout validation checks on the e-TDS returns to ensure compliance with above five
parameters, and a provisional receipt will be issued on successful validation. 6.2 Section
139A(5 B) requires that PAN of the deductees should be mentioned in the TDS returns.
Wherever PAN of deductees is not mentioned by a deductor in his e-TDS return, this fact will
be recorded on the provisional receipt as deficiency, to be removed by the deductor.
However, in such cases, NSDL will accept the e-TDS returns. The deficiency can be removed
by the deductor within 7 days, failing which the e-TDS returns will be sent by NSDL to the
Department indicating the deficiency therein for appropriate action by the concerned A.O.
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58. 7. Upload Charges: Since e-filing of TDS returns will reduce the voluminous paper work
involved in filing of paper TDS returns and enclosures thereby significantly reducing the
compliance cost of deductors, the e-intermediary i.e. NSDL have been authorised to collect
service charges in respect of the various services being rendered by them to the deductors for
upload of e-TDS returns at the following rates:
Category of e-TDS return
Upload charges
Returns having records of up to 100 deducted records Rs.25/- Returns having records of 101
to 1000 deducted records Rs. 150/- Returns having records of more than 1000 deducted
records Rs.500/- Service tax if any will be payable by detectors in addition to the above.
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59. e-Payment
Income Tax Department
Tax Applicable*(Tax Deducted/Collected At Source From)
(0020)COMPANY DEDUCTEES
(0021)NON-COMPANY
DEDUCTEES
Challan No./
ITNS
281
Tax Deduction Account
No*
Assessment Year* 2017-18
Full Name ThinkNext Technologies Pvt.Ltd.
Flat/Door/BlockNo.
Name of premises/Building/
Village
Road/Street/Lane Area/Locality
City/District* State* Punjab
Pin Code *
Email ID
Mobile No.
Type Of Payment*
(200)TDS/TCS Payable by Taxpayer
(400)TDS/TCS Regular Assessment
(Raised by I.T. Deptt.)
Nature Of
Payment*
94C contractor sub-contractor
Bank Name* HDFC
Type the characters you see in the picture below.These characters are case sensitive.
click to refresh image
*
Note:
• Enter valid 10-digit Tax Deduction Account Number (TAN) first.
• Fields marked with * are mandatory.
• Provision to enter tax amount (i.e. Fee under sec. 234E, Basic Tax, Interest etc) is
given in the Bank's site.
• Do not enter double quotes ("") in any of the fields
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60. CONCLUSIONS
Taxes-
Taxes in India are of two types, Direct Tax and Indirect Tax.Direct Tax, like
income tax, wealth tax, etc. are those whose burden falls directly on the taxpayer. The burden
of indirect taxes, like service tax, VAT, etc. can be passed on to a third party.
Income Tax
Income Tax Rates
•No income tax is applicable on all income up to Rs. 1,50,000
pery e a r . ( R s . 1 , 8 0 , 0 0 0 f o r w o m e n a n d R s . 2 , 2 5 , 0 0 0 f o r s e n i o r citiz
ens)
•From 1,50,001 to 3,00,000: 10% of amount greater than
Rs.1 , 5 0 , 0 0 0 ( L o w e r l i m i t c h a n g e s a p p r o p r i a t e l y f o r w o m e n a n d se
nior citizens)
•From 3,00,001 to 5,00,000 : 20% of amount greater than Rs. 3,00,000 +
15,000 (slightly less for women and further less for senior citizens)
•Above 5,00,000 : 30% of amount greater than Rs. 5,00,000
+5 5 , 0 0 0 ( s l i g h t l y l e s s f o r w o m e n a n d f u r t h e r l e s s f o r s e n i
o r citizens) A 10% surcharge (tax on tax) is applicable if the taxable income
(takingi n t o c o n s i d e r a t i o n a l l t h e d e d u c t i o n s ) i s a b o v e R s . 1 0 l a k h s
( R s . 1 m i l l i o n ) . T h e l i m i t o f 1 0 l a c s w a s i n c r e a s e d t o R s . 1 c r o r e
( R s . 1 0 million) with effect from 1 June 2007 for corporate assesses. All taxes in India
are subject to an education cess, which is 2% of
thet o t a l t a x p a y a b l e . W i t h e f f e c t f r o m a s s e s s m e n t y e a r 2 0 0
8 - 0 9 , Secondary and Higher Secondary Education Cess of 1% is applicable on the subtotal
of taxable income.
F o r c o m p a n i e s , i n c o m e i s t a x e d a t a f l a t r a t e o f 3 0 % f o r I
n d i a n companies, with a 10% surcharge applied on the tax paid by companies with gross
turnover over Rs. 1 crore (10 million).
Sale Taxes-
Central Sales tax is generally payable on the sale of all goods by a dealer in the course
of inter-state Trade or commerce or, outside a State or, in the course of import
into or, export from India.
Interstate sale
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61. According to S3, a sale or purchase shall be deemed to take place in the course of interstate
trade or commerce in the following cases:
when the sale or purchase occasions the movement of goods from one State to
another;
•when the sale is effected by a transfer of documents of title to the goods during
their movement from one State to another. Sales tax is payable to the sales tax authority in the
state from which the movement of goods commences. It is to be paid by every dealer on the
sale of any goods effected by him in the course of inter-state trade or
commerce, notwithstanding that no liability to tax on the sale of goods
arises under the tax of the appropriate state.
Possible Offences and the penalties for such Offences
The offences that may be committed and the penalties prescribed for can be summarised as
under. Offences Under section 10 are punishable with simple imprisonment (up to 6 months)
with or without fine.
• Giving false declaration in form C, E1, E2, F or H, Which He knows or has reason to
believe it to be false.
• Having possession of Form C, which is not Obtained as per provision of the CST Act.
• Not Getting Registered under the CST act, When Required to be Registered or Not
Complying with provisions relating to security.
VAT
VAT is Value Added Tax which is charged on value addition. VAT can be considered as a
multi-point sales tax with set off four tax paid on purchases of inputs material and capital
goods. Therefore dealers can deduct the amount of tax paid on purchase from the tax
collected on sales, Thereby paying just the balance amount to the government
VAT is a more transparent and accurate system of taxation. The existing sales tax
structure allow for double taxation thereby cascading the tax burden. In Vat act we can take
credit of tax paid on input
According to Sale Tax Act:-
The manufacturer pays tax on each raw material used to production of finished goods.
Such tax paid goes to the government. The manufacturer adds the taxes to his cost. The
labour charge, processing charge and his profit will be added to make up the sales price.
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62. There after he paid tax on the entire amount. The government receives tax two times- once
on the row materials bought by the manufacturer and again on the final product.
Central Excise:-
Central Excise duty is an indirect tax levied on those goods which are manufactured
in India and are meant for Home consumption. Central excise revenue is the biggest single
source of revenue for the government of India. The Union Government tries to achieve socio
economic objectives by making suitable adjustments in the scope and Quantum of levy of
central excise duty.
Custom Duty:-
Duties Of Customs are levied on goods imported or exported from India @ specified
under the customs tariff act, 1975 as amended from time to time or any other law for the time
being in force. In order to give a broad guide as to classification of goods for the purpose of
duty liability, the central board of excise and customs (CBEC) bring out periodically a book
called the “Indian custom tariff guide” which contains Various tariff rulings issued by the
CBEC. The Act also Contains Detailed provisions For warehousing of the imported goods
and manufactured of goods is also possible in the warehouses.
TYPES OF DUTIES :
• Basic Duty (5 to 40%)
• Additional Duty (Countervailing Duty)
• Antidumping Duty
• Protective Duty
• Duty On Bounty Fed articles
• Export Duty
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63. BIBLIOGRAPHY
Books
• JagadishR.,Financial Ratios and Financial Statement Analysis
• Martin Fridson,Financial Statement Analysis
• Sultan Chand, Double Entry Book Keeping
Web Sites
• http://www.projectsjugaad.com/BBA-Projects.asp
• http://mbahotspot.com/mba-files/
• http://www.investopedia.com/terms/f/financial-analysis.asp
• https://www.cleverism.com/financial-statement-analysis-introduction/
• http://www.slideshare.net/hemanthcrpatna/a-project-report-on-financial-statement-
analysis
• http://www.slideshare.net/hemanthcrpatna/a-project-report-on-analysis-of-financial-
statement-of-icici-bank
• http://projects.students3k.com/mba-finance-projects-a-study-on-analysis-of-financial-
statements.html
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