Indirect Tax

    Indirect Taxation Services - GST Services

    Introduction to Tax System:

    Being one of the fastest growing economies in the world, Taxation in India has broader scope since decades. Two major taxes that fetch revenue for India are Direct Taxes and Indirect taxes the major difference between Direct Tax and Indirect tax are;

    • - Direct taxes are directly levied on the income of the individuals and entities of the country, and this levy structure called Progressive Taxation.
    • - Indirect Taxes are indirectly imposed on final consumer whom getting benefited from goods produced or services rendered, and this levy structure called Proportional Taxation.

    Indirect Taxes in India -Through Lenses of History:

    Though the beginning of levy of Indirect taxes in India were not recorded yet there were few references proving existence of Indirect Taxes even Before Christ (BC). During 17th & 18th Century when India was under the British Rule the indirect taxes were imposed and collected on agricultural Produce, commodities, livestock and on many others. After Independence, constitution of India ‘the supreme law of India’ layout federal structure to Indian Government and designate powers to both Central and State Governments. Thus, both Central and state government has power to impose taxes.

    List of Indirect Taxes:

    Earlier there were several types of Indirect Tax enactments under various Indirect Tax laws:

    List of Indirect taxes were imposed by Central Government;

    • - 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 also other cesses and surcharges.

    List of Indirect Taxes were imposed by State Government;

    • - Value Added Tax, Entertainment Tax, 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 also other State cess and surcharges.

    Later, these Indirect Taxes were subsumed in current tax system called Goods and Service Tax (GST).

    Indirect Taxation-GST:

    Goods and Services Tax (“GST”) is the current Indirect tax System in India and it came into force on 1st July 2017. GST will impose and collected by both Central and State governments. GST was formed by subsuming earlier Indirect taxes with an intent of “One Nation One Tax” and considered it as Good and Simple Tax in India. This Dual GST Model will be levied on supply of goods and services as recommended by GST council.

    Intra-state supply attracts Central GST & State GST and Inter-state supply attracts Integrated GST. GST is not applicable on Petroleum products, Tobacco, Alcohol for human consumption and are still charging under some earlier Indirect taxes. Integrated GST is applicable on Imports after imposing Custom duty and exports are exempted under GST. GST facilitates single interface with GST portal for taxpayers and authorities. Implementation of GST eradicated the cascading effect also enable the supplier to avail Input tax credit on inputs used for supply. Broadly GST has brought significant positive impact to the tax system.

    Indirect Taxes/GST/Customs- Impact on Indian Economy:

    Indirect taxation plays a vital role in generating revenue sources to the government.

    Advantages of Indirect Taxes: Indirect taxes facilitate consumers in opting better products, Indirect tax mechanism brings proper utilization of resources, leads to healthy competition, boosts the country’s economy ultimately increase the standard of living of people.

    Disadvantages of Indirect Taxes: Better to termed it a drawback instead of disadvantage as indirect taxes or current GST regime will be levied same on consumers whose earning capacity is different to one other. Apart from positive sides in beginning it slightly slow down the economy.

    SBS – Indirect Tax Services:

    The revolutionary implementation of new Indirect tax regime called GST in India and its outcomes are resulted either positively or negatively to Manufacturing, Automotive, Retail, Real estate, Technology and several other sectors.

    Indirect tax Advisory Services:

    As new compliances for adaptation seems difficult for new or existing companies/firms/individuals under GST law and the same will be simple with the Professional Advisory.

    Professionals of SBS AND COMPANY LLP have diverse exposure to earlier Indirect taxes & current GST regime and will help the clients in effective transaction planning with indirect Taxes or GST implications, proposing opinions, drafting of suitable replies to department notices, assisting in tax refund procedure, which lead to acceleration of day to day business activities for smooth functioning of organisation.

    GST Retainership Services:

    GST procedures might be complicated to follow when day to day business activities are affecting and our resolution is retainership.

    At SBS AND COMPANY LLP, we always try to erase the complexities arising out from newly implemented and frequently amended GST laws through our professional approach which will help the organisations to cope up with the current demands. Our extended services include structuring of business transactions with amending GST laws, ensuring timely filing of GST returns, comply with GST Audits, assistance in refunds claims, consultancy and liaison with GST departments.

    Indirect Tax Litigations – Service tax, Excise duty, GST:

    Litigations under Indirect taxation prior to GST and during or after evolution of GST has absolute hardship with new and existing laws for various taxpayers.

    Professional of SBS AND COMPANY LLP can solve the litigations of earlier Service tax, Excise duty and current tax regime of GST in diversified manner until disposal of matter and helps taxpayers by handling the disputed matters before authorities and CESTAT.

    At SBS AND COMPANY LLP we believe in progress by accomplishing the requisites of client which make their job easier in business activities with the methodology of consistent learning process in every assignment that we are responsible for.

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