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Semester 3: B.Com Corporate Secretaryship
History of Taxation
History of Taxation
Ancient Taxation Systems
Taxation dates back to ancient civilizations where rulers imposed taxes for various purposes such as military expenditures and infrastructure development. For instance, Ancient Egypt had a complex tax system based on agriculture and labor.
Medieval Taxation
During the medieval period, taxation evolved with feudalism. Lords taxed peasants in exchange for protection and land use. This period also saw the introduction of tolls and customs duties.
Modern Taxation
The modern era saw the establishment of income tax in the 19th century, initiated for better government funding. Countries developed more structured tax systems, leading to progressive taxation.
Globalization and Taxation
With globalization, taxation has become more complex. multinational corporations face different tax regulations in various countries, leading to discussions on tax avoidance and international tax reforms.
Taxation and Economic Growth
Taxation plays a crucial role in economic development. Governments utilize taxes to fund public services, while the balance between tax rates and growth potential continues to be debated among economists.
Customs Act 1962
Customs Act 1962
Introduction to Customs Act 1962
The Customs Act 1962 is the principal legislation governing customs duties and the collection of these duties in India. It provides the framework for the administration of customs duties and outlines the procedures for import and export of goods.
Objectives of the Customs Act
The main objectives of the Customs Act include preventing smuggling, collecting revenue, enforcing foreign trade regulations, and ensuring compliance with national security measures.
Types of Customs Duties
The Customs Act defines various types of customs duties, including basic customs duty, additional customs duty, and protective duties. Each serves different purposes in regulating trade and protecting domestic industries.
Customs Procedures
Customs procedures detail the steps to be followed during the import and export of goods. It includes filing documents, customs clearance, assessment of duties, and inspection of goods.
Role of Customs Authorities
Customs authorities are responsible for enforcing the provisions of the Customs Act, collecting customs duties, and combating smuggling. They conduct inspections, audits, and investigations as part of their duties.
Offenses and Penalties
The Customs Act specifies various offenses such as smuggling, misdeclaration, and breach of conditions. The penalties for these offenses can range from fines to imprisonment.
Recent Amendments
Recent amendments to the Customs Act have focused on improving the ease of doing business, introducing electronic processes, and aligning with international trade standards.
Introduction to GST
Introduction to GST
What is GST
Goods and Services Tax (GST) is a single tax system for the whole country that is applied to the sale of goods and services. It replaces several indirect taxes, creating a unified tax structure.
Objectives of GST
The main objectives of GST are to simplify the tax structure, eliminate the cascading effect of taxes, enhance compliance, and boost economic growth by creating a seamless market.
Types of GST
GST is categorized into three types: Central GST (CGST), State GST (SGST), and Integrated GST (IGST). CGST and SGST are applicable for intrastate transactions, while IGST is for interstate transactions.
GST Registration
Businesses with an annual turnover above a specified threshold must register for GST. Registration provides a unique Goods and Services Tax Identification Number (GSTIN), essential for compliance.
Benefits of GST
GST helps in reducing the overall tax burden on consumers, promotes ease of doing business, encourages tax compliance, and enhances efficiency in tax administration.
Challenges in GST Implementation
Some challenges include technological issues, awareness and understanding of the law among businesses, and transitional issues faced by different sectors during the implementation phase.
Impact of GST on Corporate India
GST has streamlined the tax process for corporates in India by reducing compliance requirements and costs. However, businesses have to adapt to the new system, which may require changes in accounting practices.
Introduction to Taxable Events under GST
Introduction to Taxable Events under GST
Definition of Taxable Event
A taxable event under GST refers to an occurrence that leads to the liability to pay tax under the Goods and Services Tax framework. It signifies the point at which the tax is applicable.
Types of Taxable Events
Taxable events under GST can be classified into the supply of goods, supply of services, and deemed supplies, which are recognized as taxable even if no actual supply occurs.
Time of Supply
The time of supply is crucial in determining when GST is applicable. It generally refers to the date when the supply is made, and it can impact the tax period in which the tax must be paid.
Place of Supply
The place of supply is essential for determining which state or territory's GST will be applicable. It is crucial for interstate transactions and has specific rules for goods and services.
Value of Supply
The value of supply plays a pivotal role in calculating the GST liability. It includes the transaction value, which is the price actually paid or payable for the supply of goods or services.
Exemptions and Non-Taxable Supplies
Certain supplies are exempt from GST or classified as non-taxable. Understanding these exceptions is important for compliance and tax planning.
Introduction to Registration under GST
Introduction to Registration under GST
Overview of GST Registration
GST registration is a mandatory process for businesses and individuals whose aggregate turnover exceeds the prescribed limit under the Goods and Services Tax law. It allows entities to collect tax from customers, claim input tax credit, and ensures compliance with tax regulations.
Who Needs to Register
Various categories of taxpayers need to register under GST, including businesses with a turnover of over a certain threshold, those involved in inter-state supplies, casual taxable persons, and non-resident taxable persons.
Benefits of GST Registration
Registered taxpayers can enjoy benefits such as availing input tax credit, protecting their business interests, enhancing credibility, and enabling smooth interstate trade.
Process of GST Registration
The process involves obtaining a PAN, submitting an application on the GST portal, submitting required documents, and receiving the GSTIN upon successful verification.
Documents Required for Registration
Documents typically required for GST registration include PAN card, proof of business registration, identity and address proof of promoters, and bank account statements.
GST Registration for E-commerce Sellers
E-commerce operators must register under GST if they supply goods or services through an electronic platform. They are required to collect tax on behalf of the suppliers.
Amendments and Cancellation of Registration
Taxpayers can request amendments to their registration details through the GST portal. Registration can also be cancelled upon application, though certain conditions must be met.
