TAX LAWS BY PROF. CMA. CS. V.N. PARTHIBAN, FICWA, ACS, FIII, MA, MCOM, MSC, MBA, MPHIL, MFM, MCS, MIM, MFT, MHRM, MSW, ATC, ADIM, LLM, ML, ASM, MLM, ETC.

MEANING TAX: It is a compulsory charge imposed by the Government without any expectation of direct return in benefit” In other words, a tax is a compulsory payment or contribution by the people to the government for which there is no direct return to the tax payers”

GENERAL CHARACTERISTICS OF TAX Tax is a compulsory contribution Benefit is not the basic condition Personal obligation Common Interest Legal collection Element of sacrifice Regular and periodical payment No discrimination – tax is levied on all people Wide scope

INCOME TAX ACT, 1961 GROSS TOTAL INCOME: According to Sec.14 of the Income Tax Act, income of an individual is computed under the following five heads: 1. Salaries 2. Income from House Property 3. Profit and gains on business or profession 4. Capital gains 5. Income from other sources.

THE CENTRAL EXCISE ACT, 1944 Excise refers to duty levied on goods manufactured or produced in India. There are four basic conditions for levy of Central Excise duty. They are as below: 1. The duty is on goods 2. The goods must be excisable 3. The goods must be manufactured or produced 4. Such manufacture or production must be in India Unless all these conditions are satisfied, central excise duty cannot be levied.

EXCISE DUTY Excise duty can be defined as “a tax duty on some produced goods, either at some stage of production or before their sale to domestic customers. Central excise revenue is the biggest single source of revenue for the government of India

SCHEME OF THE ACT Chapter – I : (Sec.1 – 2A ) Extent and commencement and definitions Chapter – II (Sec.3 to 12) Levy and Collection of duty Chapter-IIA (Sec.12A to 12 D) Indicating amount of the price of goods etc. Chapter-III (Sec.12E to Sec.23) Powers and duties of officers and land holders Chapter – IIIA (Sec.23A to 23H) Advance rulings Chapter-IV – omitted Chapter-V: Settlement of cases (Sec.31 to 32PA) Chapter-VI (Sec.33 to 34A) Adjudication of confiscations and penalties Chapter-VI A (Section 35 to36): Appeals Chapter-VI B (Sec.36A and 36B) Presumption as to documents Chapter-VII (Sec.37 to 40) Supplemental provisions

TYPES OF EXCISE DUTIES Duties under the Central excise Act are of two types: 1. Basic duty and 2) Special Duty In addition to these two duties, there are some duties which are leviable: 1. Basic excise duty CENVAT (Sec.3(1)(a) 2. Special duty of excise (sec.3(1)(b) 3. Additional excise duty in lieu of sales tax 4. Additional duties leviable on specific items 5. CESS (leviable on certain specified commodities under various Act) 6. National calamity contingent duty 7. Additional duty on Mineral products

THE CUSTOMS ACT, 1962 Customs duty is on import into India and export out of India. Duties of customs are levied on goods imported or exported from India at the rate specified under the Customs Tariff Act, 1975 as amended from time to time or any other law for the time being in force.

OBJECTIVES OF CUSTOMS DUTY Raising revenue for Central Government is the main but not only purpose of customs Act. Customs Act is used to: 1. Regulate imports and exports 2. Protect Indian industry from dumping 3. Collect revenue of customs duty

OFFICERS OF CUSTOMS - Sec.3 Chief Commissioner of Customs Commissioner of Customs Commissioner of Customs (Appeal) Joint Commissioner of Customs Deputy Commissioner of Customs Asst. Commissioner of Customs Such other class of officers of customs as may be appointed for the purposes of this Act.

TYPES OF CUSTOMS DUTIES Basic Customs duty Additional duty (to compensate duty on inputs used by Indian manufacturers) Additional customs duty (CVD) Anti-dumping duty, protective duty Safeguard duty The duty on Bounty fed articles NCCD of customs Export duty