Understanding indirect taxation and its consequences

Let’s face it. None of us are really good in understanding indirect taxation. We tend to go all awry and confused when we face such financial issues. And we tend to ignore it till the last moment when we have no clue how the entire system works and it becomes nothing short of rigmarole. Thankfully for our benefit, there are companies like Mahaveer and Singhvi Associates- http://www.ca-msa.com/ which possess a talented and trustworthy team of competent accountants who will be able to calculate and help you pay the right taxes.

The entire plethora of indirect taxation is basically the associated taxes you pay for goods and services availing in your country. They include GST, service tax, And Sales tax etc. Another common colloquial term for the indirect taxes is “sin taxes”, as the government earns most of their funds in this way by taking and charging taxes on their comfort.

1.    Indirect tax is usually levied on the seller but then it can be recovered from the person buying goods as well.

2.    One of the best examples of indirect tax is GST. By adding and combining all the taxes available we can easily now get an aggregate total tax for the services awe avail or the products we buy. Rather than having to scratch your head over the different percentages and different types of taxes that can occur, you pay one consolidated tax.

3.    Excise duty tax is levied on specific products which are manufactured in India. Though recently it has all come under GST, but usually a different tax was levied and had to be managed.

4.    Another different type of indirect tax is STT. The Securities Transaction Tax is usually applied for products being levied on shares and other products bought through the stock exchanges. It will help you from losing money as tax from short term gains and rather utilise it for long term gains.

5.    Stamp duty tax or entertainment tax is levied on different modes and forms on entertainment that is available all through the country. Whether it is your favorite concert or a weekend trip to the entertainment park, this is the tax you must pay.

And if this still looks confusing, You should definitely contact the company mentioned above for swifter resolution of your taxes. So don’t hesitate! If you need their help, go ahead and live a hassle free life. In peace!