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Income tax is a tax levied by the government on the income earned by individuals, businesses, and other entities. The amount of tax owed is based on the income level and is usually calculated as a percentage of the taxable income. The purpose of income tax is to raise revenue for the government to fund various public expenditures. The laws and rates for income tax vary by country, but it is a common feature of most tax systems worldwide.
Examples of indirect taxes include sales tax GST, value-added tax (VAT), excise tax, customs duty, and other similar taxes. The amount of tax paid by the consumer depends on the price of the goods or services and the tax rate that applies.
Indirect taxes are usually regressive, meaning that they have a greater impact on low-income individuals than on high-income individuals. This is because low-income individuals tend to spend a larger percentage of their income on goods and services that are subject to indirect taxes.
Governments use the revenue generated from indirect taxes to fund public services such as education, healthcare, and infrastructure development. Indirect taxes are often considered to be an efficient way of raising revenue because they are easy to collect and can be applied uniformly across a wide range of goods and services.
If you have any specific questions or concerns about indirect taxes, feel free to let me know and I'll do my best to assist you.
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