New laws regarding the filing of indirect tax returns have compelled businesses to seek professional help when filing returns. So, what is indirect taxation and why do businesses need professional indirect taxation services in Mysore?
What is indirect taxation?
Every product or service you buy or pay for includes a small additional amount which is a little above the actual price of the product or service. This extra amount is called an indirect tax that is levied on all products and services and is payable by the consumer.
The seller of the products or provider of the service will collect this indirect tax from the consumer and submit this amount to the Government.
The Goods & Service Tax introduced in 2017 replaced all other indirect tax laws applicable till then to offer a more simplified compliance structure for indirect taxes.
Types of indirect taxes in India
Unlike income tax which is levied on the income of an individual, indirect taxes are levied on all products and services.
- Customs duty: Customs duty is levied on imported and exported goods in the country.
- Stamp duty: If you have bought a home or taken a loan then you would have paid stamp duty. Stamp duty is a state-levied duty that is a testament to your transaction. That is why the amount of stamp duty differs in every state in India.
- Excise duty: Like stamp duty, it is a state-imposed tax and differs from state to state.
- Securities Transaction Tax: Securities transaction tax is levied every time you sell shares, stocks, or mutual funds. It is more of a trading tax and does not depend on whether you make a profit or not from the transaction.
Why indirect taxes are important for the country’s development.
It is noteworthy to understand why the Government collects indirect taxes. The Government collects indirect taxes from businesses to render public services, including health care, utility services, roads, and also education.
Also, by increasing the GST amount on luxury goods and services, the Government is indirectly curbing its usage but earning a substantial amount from it at the same time.
Why do businesses need professional Indirect Taxation Services in Mysore?
Although simplified through the introduction of Goods and Services Tax, businesses need professional indirect taxation services in Mysore. The complexity of filing indirect taxation returns makes it necessary to hire professional indirect taxation services in Mysore.
Companies must file GST returns every month or quarterly. Further, for companies with a turnover of more than Rs 2 crore, they need to file GST returns every year.
Filing GST returns can be challenging for businesses that are unaware of the processes. Hiring professional chartered accountant services in Mysore can help you file timely GST returns. This saves the company from late filing fines levied by the Government.
Mahaveer Singhvi and associates are leading tax consultants in Mysore. We offer tax management and consultancy services for businesses and individuals. Rely on Mahaveer Singhvi and Associates for all your financial filings and returns. Stay tax compliant in Mysore.