India has a well developed tax structure with a three-tier federal structure, comprising the Union Government, the State Governments and the Urban/Rural Local Bodies. The power to levy taxes and duties is distributed among the three tiers of Governments, in accordance with the provisions of the Indian Constitution.
- Union Government is primarily responsible for imposing taxes on income, custom duties,central excise and service tax.
- State Government is responsible for levying taxes like State Excise, stamp duty, VAT (Value Added Tax), land revenue and professional tax.
- The local bodies are also authorized to impose tax on properties, octroi and many more.
The Tax whose burden can not be shifted from the assesses to other person is known as Direct Tax. The assesses himself has to borne it totally. Eg- Income Tax, Wealth Tax.
Tally.ERP 9 supports the following direct taxes:
The Tax whose burden can be shifted from the assesses to other person is known as Indirect Tax. Eg- VAT, CST, Service tax, Excise Duty, Custom Duty etc
Tally.ERP 9 supports the following indirect taxes:
- Excise for Manufacturer
- Excise for Traders
- Service Tax