Taxation is the act or instance of imposing a pecuniary burden or levy upon a taxpayer by the government, to finance its expenditures, and achieve its developmental and noble objectives. A taxpayer can be an individual, company, or property owner, or any other legal entity, active in any sector of the economy of a sovereign country. Again, this enforced contribution or levy can be imposed by government at State, Federal, and even Local levels.
The taxation law in any country is a body of strict rules, regulations, and procedures for governing and regulating taxation in the country. These taxation laws, and tax rates vary from country to country and also from sector to sector of economy, and generally keep changing from time to time. This taxation, consisting of direct and indirect taxes, is levied upon all types of taxable financial transactions handled by an individual or any entities, at any point of time, besides the taxation on wealth property owned by any of these.
In most of the countries of the world, taxes are levied on the income, wealth and property, and capital gains of individuals, companies, institutions, and other legal entities, obtained through doing business in any part of the country. The native entities are taxed on their all types of incomes and gains from the worldwide sources, while the foreign entities are taxed only on the incomes and gains earned through doing business in the given country. Our well-informed and experienced taxation attorneys can help you gratifyingly in these all types of taxation issues.
The essential and main objective of taxation is to collect money for financing governmental expenditures of all types, made all along the year. Apart from this, there are other diverse objectives, which are summarized broadly in the following paragraph:
The taxation system in india has well-developed and refined, with three-tiers structure, comprising of the Union Government, State Governments, and the Local Authorities. Article 246 of the Constitution of India, and its Schedule VII, demarcate and distribute powers to the union and state governments regarding taxation. The taxation in india imposed by the union government encompasses the areas income tax (except agricultural income), central excise, customs duties, service tax, and sales tax. While the taxes levied by the State governments are - intra-state sales tax, state excise, stamp duty, land revenue, entertainment duty, occupational tax, etc. The local authorities such as municipalities, levy taxes on properties and transactions of these, on utilities and facilities, octroi (tax on the entry of products/goods within local jurisdictions), tax on markets, etc.