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INDEX (TABLE CONTENT)

SR.
NO. PAGE
INDEX NO.

1
INTRODUCTION 6
2
COMPANY PROFILE 26
3
TERMINOLOGIES 30
4
OBJECTIVES OF THE STUDY 31
5
SCOPE OF THE STUDY 32
6
NEED OF THE STUDY 33
7
LIMITATIONS 34
8
CONTRIBUTION DURING SIP 35
9
RESERACH METHODOLOGY 42
10
FINDINGS 48
11
SUGGESTIONS 49
12
CONCLUSION 50
13
BIBILIOGRAPHY 51

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INTRODUCTION

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 INTRODUCTION

Taxation is the means by which a government or the taxing authority imposes it levels a tax

on its citizen and business entities. Form income tax to goods and business entities.

The central and state governments play a significates role in determining the taxes in India

to streamline the process of taxation and ensure transparency in the country. the government

of India rates two types of taxes on the citizens of India – Direct Tax and Indirect Tax.

The act of practice of imposing taxes against any person, property, or activity for the support

of government is called taxation. A tax is a financial charge imposed by a state or functional

bodies governing a state. Funds are generated through taxation, and then, states or other

governing bodies perform various functions using these funds. These functions include

enforcement of law-and-order economic infrastructure, war expenditures, protection of

historical properties, and many more Government uses these funds also to operate itself.

The fund collected from the public is in the form of money that is invested in public welfare

and services. These services include education in school, Colleges, health care system,

public transport, and many other services consumed by the public.

India is a well-developed country, which also has a well-developed tax structure. Taxation

in India is done through two federal bodies, that is, the State Government and the Central

Government. The authority of imposing taxes is distributed between these two bodies.

These governing bodies implement taxes according to the provision laid by the Constitution

of India. The main taxes that the Contra, Government imposes are income tax, customs

duties, central excise, sales tax, and service tax. The taxes that the State Government

imposes are stamp duty, state excise, land revenue, and entertainment tax.  In India, since

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1991, the tax system has been undergoing a radical change. The taxation structure is divided

into two categories: 1. Direct taxes 2. Indirect taxes

A direct tax is a tax that a person or organization pays directly to the entity that imposed it.

Examples include income tax, real property tax, personal property tax, and taxes on assets,

all of which are paid by an individual taxpayer directly to the government.

A direct tax is levied on individuals and organizations and cannot be shifted to another payer.

Often with a direct tax, such as the personal income tax, tax rates increase as the taxpayer’s

ability to pay increases, resulting in what’s called a progressive tax

Indirect taxes are usually transferred to another person after being initially charged as a direct

tax. Mutual examples of an indirect tax include Goods and Services Tax (GST) and VAT.

which is then transferred to the consumers when it is part of the final price of the goods or

services, therefor, making it an indirect tax for the consumers.

It is defined as the tax levied not on the incomes, profits or revenue but the goods and

services rendered by the taxpayer. Early the list of indirect taxes imposed on taxpayers

included serviced tax, sales tax, value added tax (VAT), central excise duty and customs

duty. Both indirect taxes are vital components that play an important role in changing the

course of the Indian economy.

However, with the implements of goods and services tax (GST) regimes form 01 July 2017,

it has replaced all forms of indirect tax imposed on goods and services by the states and

central governments.

GST has not only been reduced the physical interfaced but also lower the cost of compliance

with the uniforms of the indirect taxes.

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GST is known as the goods and services tax. It is and indirect tax in which replaced many
indirect taxes in India such as the excised duty, VAT, services tax, etc

Indirect tax is something that a manufacturing pays to the Governments of his country.

Indirect tax is the applied by the governments of India .

History Of GST

On July 1st 2017, the Goods and Services Tax implemented in India. But, the process of

implementing the new tax regime commenced a long time ago. In 2000, Atal Bihari

Vajpayee, then Prime Minister of India, set up a committee to draft the GST law. In 2004, a

task force concluded that the new tax structure should put in place to enhance the tax regime

at the time.

In 2006, Finance Minister proposed the introduction of GST from 1st April 2010 and in 2011

the Constitution Amendment Bill passed to enable the introduction of the GST law. In 2012,

the Standing Committee started discussions about GST, and tabled its report on GST a year

later. In 2014, the new Finance Minister at the time, Arun Jaitley, reintroduced the GST

bill in Parliament and passed the bill in Lok Sabha in 2015. Yet, the implementation of the

law delayed as it was not passed in Rajya Sabha.

GST went live in 2016, and the amended model GST law passed in both the house. The

President of India also gave assent. In 2017 the passing of 4 supplementary GST Bills in

Lok Sabha as well as the approval of the same by the Cabinet. Rajya Sabha then passed 4

supplementary GST Bills and the new tax regime implemented on 1st July 2017.

Important points of GST

1. The Goods and Services Tax (GST) was first implemented in France.

2. India's GST is based on the Canadian model.

3. GST in India was made on the recommendation of Vijay Kelkar Committee.

4. GST in India was implemented on July 1, 2017

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 5. The first state which implemented the GST was Assam.

6. Amitabh Bachchan has been made the brand ambassador of GST.

7. GST has been implemented under Article 279 of the Indian constitution.

8. GST Council was formed by the President of India in September 2016.

9. At present Finance Minister Arun Jaitley is the Chairman of the GST Council.

10. At present GST Council has 31 members.

11. GST has been implemented by the 101st Constitution Amendment Act, 2016.

12. The GST was the 122nd constitutional amendment bill to be introduced in the

Parliament of India.

13. The President of India approved GST bill on8th September 2016.

14. There is a provision of 5 years imprisonment for those who do not pay GST.

15 There are 5 rates of taxes in GST i.e., 0%, 5%, 12%, 18% and 28%.

GST tax rate 2019

17. GST is an indirect tax in more broader terms it can be said a federal tax.

18. After the implementation of GST, sales tax, service tax, customs duty, excise duty, VAT,

Octroi tax etc. will not exist.

19. The biggest reason behind the implementation of the GST is to bring uniformity in the tax

system of the country.

20. After the implementation of GST, tradition of 'Tax upon Tax' will be eliminated.

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TYPES OF TAXATIONS STRUCTURES IN INDIA

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WHAT IS A DIRECT TAX?

Direct taxes are the taxes that are levied on the income and resources of individuals or

organizations. Normally, they are levied on wealth or income through income tax, corporate

tax, capital gains tax, an; inheritance tax. Personal income tax is imposed by the Central

Government and governed by the Central Board of Direct Taxes under the Ministry of

Finance. The income tax is charged by the government according to the individual’s

income. For example, if a person earns Rs. 2,00,000 per annum and the income tax on it is

1 percent, then the taxable amount is 20 percent of Rs. 2,00,000. The amount to be paid to

the government is thus Rs. 40,000.

A direct tax is a tax that a person or organization pays directly to the entity that imposed it.

Examples include income tax, real property tax, personal property tax, and taxes on assets,

all of which are paid by an individual taxpayer directly to the government.

Direct taxes, usually charged on a person’s income are paid directly by taxpayers or an

organization to tax authorities of the Government of India. The person or the association in

question cannot transfer this type of tax to another person or entity for payment. Some of the

examples of direct tax include income tax and corporate tax in India.

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TYPES OF DIRECT TAXES IN INDIA

 CORPORATE TAX
 INCOME TAX
 CAPTAL GAIN TAX

• CORPORATE TAX

Under the Indian Income Tax Act, 1961, both Indian as well as foreign organization are

liable to pay taxes to the government of India. The corporate tax is charged on the net profit

of domestic firms. Also, foreign corporations whose profits appear or are deemed to emerge

through their operations in India are similarly liable to pay taxes to the Government of India.

The income of a company, remain it in the form of dividends, interest and royalties, is also

taxable.

At present, companies having gross turnover up to Rs.250 crore are responsible to pay

corporate tax at 25% of the net profit even though companies with a gross turnover of

morethanRs.250 crore are responsible to pay the corporate tax at 30%.

• INCOME TAX

Income tax is maybe the most well-known direct tax imposed by the government on annual
income generated by businesses and individuals. The income tax on income generated by
the business houses is called as Corporate Tax. Income tax is calculated as per the provisions
of Income Tax Act, 1961 and is directly paid to the central government on a yearly basis.
The income tax rate depends on the net taxable income or the tax brace. Income tax policy
deducted in the form of TDS (tax deducted at source) in case of salaried employees.
However, in case of self-employed individuals, the tax is payable on the base of declared
income as per their Income Tax Return submission. ITR is basically a statement of income

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 and the tax liability (on the basis of income declared) which is submitted to the Income Tax
Department in the arranged format.

CAPITAL GAINS TAX

The capital assets of every person refer to anything owned for personal use or for the

purpose of an investment. For businesses, the capital asset is anything that can be used for

more than a year and is not future to be sold or liquidated during the course of business

operation. Machinery, cars, buildings, shares, bonds, art, businesses and farms are some of

the examples of capital assets. The capital gains tax is executed on the income derived from

the sale of investments or assets. On the basis of the holding period, capital tax is

characterized under short-term gains and long-term gains. Calculated the capital gains by

this formula;

CAPITAL GAINS = SALE VALUE – PURCHASE VALUE

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 DIRECT TAXES ADVANTAGES & DISADVANTAGES

ADVANTAGES OF DIRECT TAXES:-

 Equitable:-

o The Load of direct taxes cannot be shifted hence they are progressive and equitable in

nature.

 Economical:-

o The Rate of collection of direct tax is low. Mostly they are collected at source.
Hence the direct taxes are economical.

 Certain:-

o There is certainty on the funds of direct taxes to be collected from both the sides.
Tax Payers know their income and thus know the money of taxes they would be
required to pay. Also, tax authorities also know about the income expected from
direct taxes.

 Productive:-

o Direct Taxes are Productive in nature. As the community raises in numbers and
prosperity, there turns from direct taxes also grow.

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 o DISADVANTAGES OF DIRECT TAXES: -

 Inconvenient:-

o Direct Taxes Pinches the customer. The direct taxes are accordingly
inconvenient. Nobody can help feeling the pinch.

 Evadable:-

o A tax payer can submit failed return and evade the taxes. Hence direct taxes are
tax on honesty. Honest persons are suffered more in direct taxes than the
dishonest people.

 Social conflict:-

o Direct tax boosts social conflict as not every part member of the society has to pay
direct taxes.

 Discourage Saving and Investment:-

o Unnecessary increase indirect taxes may discourage savings and investment

which in long term will affect country’s economy.

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Important of Direct tax

1. Equity:

Direct taxes like income tax, wealth tax, etc. are based on the principle of ability to pay, so the equity

or justice in the allocation of tax burden is well secured by these taxes.

A horizontal equity is maintained by taxing persons in a similar economic situation at the same rate,

so also a vertical equity in direct taxation is maintained by discriminating between tax payers according

to their differing economic standing.

2. Progressive:

Usually, direct taxation is progressive in effect. Since direct taxes can be designed with fine gradation

and progressiveness, they can serve as an important fiscal weapon of reducing the gap of inequalities

in income and wealth. Direct taxes thus lead to the objective of social equality. Death duties and

inheritance taxes are unique in this respect.

3. Productive:

Direct taxes are elastic and productive. Revenue from direct taxes increases or decrease automatically

with the change in the national income or wealth of the country.

4. Certainty:

The canon of certainty is perfectly embodied in direct taxation. Compared to indirect taxes, direct taxes

are more exact and precise in estimating the revenue. Further, in direct taxes, the tax-payer knows how

much he has to pay and the State can estimate the yields correctly.

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5. Economy:

The canon of economy is also well maintained under direct taxation. Direct taxes like income tax etc.

being collected annually in lump-sum, the administrative cost of such collection will be minimum as

compared to the indirect taxes like sales tax, excise duties, etc., which are collected at short intervals

(usually, quarterly), and which involve a high cost of collection.

Further, chances of tax evasion are also minimised in direct taxes when they are collected at source.

Gladstone, therefore, puts it as: “If you had only direct taxes you would have an economical

government.”

6. Educative:

Direct taxes have an educative value as they create a civic sense among the tax-payers. Citizens realise

their duty to pay taxes and because of the direct burden of taxes they become conscious and keep vigil

on how the public income is spent by the government in a democratic country.

7. Anti-inflationary:

Direct taxation can serve as a good instrument of anti-inflationary fiscal policy designed to maintain

the price level at a stable level. The excessive purchasing power during inflation can be mopped up

from the community through increased direct taxes.

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 INDIRECT TAXES

Indirect tax is the tax imposed by the government on a taxpayer for goods and services bought.

Indirect tax is not levied on the income of the taxpayer and can be passed on from one individual

to another. Examples of indirect taxes include sales tax, entertainment tax, excise duty, etc. These

are levied on the sellers of goods or the providers of service, where it is passed on to the end

consumer in the form of service tax, excise duty, entertainment tax, custom duty etc.

Indirect tax is something that a manufacturer paying to the Government of his country. The

load of tax payment is on end consumer as they are the ones purchasing the products. Unlike,

direct taxes, these are charged on materialistic goods.

Indirect tax is at that can be passed on to another individual or thing. Indirect tax is generally executed

on suppliers or manufacturers who pass it on to the final consumer. Excise duty, customs duty, and

Value-Added Tax (VAT) these are examples of Indirect taxes.

Indirect taxes are the taxes that are collected by an intermediary body from a person who put up with

the ultimate economic burden of the tax, such as a consumer or a customer. This tax is not imposed

on an; person or organization. Rather, it is levied on goods or services. Indirect taxes include taxes

such as sales tax, value-added tax, service tax, entertainment tax, fringe benefit tax, and food tax

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e
 TYPES OF INDIRECT TAX

There are different types of indirect tax in India. But, after the implementation of GST, all
these indirect taxes were bundled into one singular tax for the citizens of India. We will take
a look at the different types of indirect tax in India:

 SALES TAX
 SERVICE TAX
 EXCISE TAX
 VALUE TAX
 CUSTOM DUTY
 STAMP DUTY

• SALES TAX :

Sales tax is a tax charged at the point of purchase for certain goods and services. It is an important

source of revenue of the states. It is levied on all sales of goods. It is the liability of the seller who

recovers this from the buyers. Each state has its own sales tax act under which the sales tax is imposed

at different rates. Retail organizations contend that such taxes discourage retail sales. The retailer

generally sells the goods on fluctuating rates to gain the benefits and meet his liability. For example,

if a retailer purchases a product of Rs. 100 and the government has imposed tax of 4% on it, then the

retailer has to pay Rs. 104 in total

• SERVICE TAX :

Service tax is an indirect tax imposed on specified services. It was introduced in India for the

first time in 1994. It is imposed at an interest of 5 percent on commissions and brokerage fees

charges by stockbrokers, the gross amount of telephone bills, and premiums for nonlife insurance.

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• EXCISE DUTY :

When any type product or good is manufactured by a company in India, then the tax charged

on those goods is called the Excise Duty. The manufacturing company pays the tax on the

goods and in turn recover the amount from their clients.

• VALUE TAX :

VAT stands for value-added tax. It is a consumption tax that is assessed on the value added

to goods and services. VAT is applied to all the commercial activities involved in the

production and distribution of goods and the provision of services. We call it a consumption

tax because it is borne by the consumer who is at the final stage of supply chain

management system. It is a multistage tax, and is levied only on value added at each stage

in supply chain management system. VAT is an indirect tax, in which the tax is collected

from someone who is not the one that actually bears the cost of the tax. VAT is charged as a

tax burden that is actually visible at each and every stage in the supply chain management

system.

• CUSTOM DUTY :

This a tax charged on the goods imported to India. Sometimes, Customs Duty is also charged on

products which are exported out of India.

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 • STAMP DUTY:

This is a tax charged on the transfer of any immovable property in a state of India. The state

government in whose state the property is positioned charges this type of tax. Stamp tax is

as well applicable on all legal documents too.

• ENTERTAINMENT TAX :

Entertainment tax is a tax that is imposed on entertainment. In India, this tax is levied on

entertainment services like movie tickets, commercial shows in large scale, and some private festival

celebrations.

Entertainment tax is charged by the state government and is applicable on any products or

transactions related to entertainment. Buying of any video games, movie shows, sports activities,

arcades, amusement parks, etc. are some of the products on which Entertainment Tax is charged.

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 ADVANTAGES OF INDIRECT TAXES:-

 CONVENIENT:-

o Indirect taxes are imposed on Manufacturers, seller’s ad traders but their burden
is imposed on the consumers of the goods and services and thus these consumers
are the final tax payers

 DIFFICULT TO EVADE:-

o As in many examples the selling price is inclusive of indirect taxes, it is very

difficult to evade these taxes.

 WIDE COVERAGE:-

o Indirect taxes have more extensive coverage than the direct taxes as majority of
the goods and services have indirect taxes included in their price. Therefore, the
consumers have to pay them.

 ELASTIC:-

o Some of the indirect taxes are elastic in nature, when government wants to
increase the revenue, they increase the indirect taxes.

 UNIVERSALITY:-

o Indirect taxes are paid by both rich and poor person so they have the universal appear.

 PATTERN OF PRODUCTION:-

o By Imposing taxes on certain commodities or sectors, government can controller

the pattern of production.

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DISADVANTAGES OF INDIRECT TAXES

 INEQUITABLE:-

o The Load of Indirect Taxes is more on poor people than Rich People. Hence
Indirect Taxes remain considered to be Inequitable.

 UNECONOMICAL:-

o As government has to make a lot of expenditures for collection of the Indirect

Taxes, This Taxes are Considered as uneconomical. Final Consumer has to pay
much higher money than received by the government.

 UNCERTAINTY:-

o Amount of Indirect Tax Collection cannot be forecast as increase in Indirect Tax

Results in Increase in Prices of the commodity and thus reduces the demand of
the commodity. Hence there is always uncertainty over the money of indirect
taxes collected.

 INFLATIONARY: -
o As Indirect Taxes increases the amounts of the commodity, they are considered
as Inflationary. If Government depends added on indirect taxes, then Inflation
will keep on increasing.

 NON-AWARENESS:-

o There is lack of awareness among the tax payers of Indirect taxes as nobody
identifies that he is paying taxes as it is included in the price.

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 UNEMPLOYMENT:-

o Due to Increase in charges, demand gets reduced discouraging industries as a

result of which Unemployment increases.

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COMPANY PROFILE

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 COMPANY PROFILE

G S Tele Communication Limited is a Public company incorporated on 02 April

2007. It is classified as Non-government company and is registered at Registrar of
Companies, Delhi. Its authorized share capital is Rs. 2,500,000 and its paid up capital
is Rs. 1,435,000. It's NIC code is 642 (which is part of its CIN). As per the NIC code, it
is inolved in Telecommunications [Production of radio and television programmes,
whether or not combined with broadcasting, is classified under class 9213.].

G S Tele Communication's Annual General Meeting (AGM) was last held on N/A and as
per records from Ministry of Corporate Affairs (MCA), its balance sheet was last filed
on 31 March 2023.

Directors of G S Tele Communication are GULSHAN KUMAR KUMAR and PIYUSH

ARORA.

G S Tele Communication's Corporate Identification Number (CIN) is

U64203DL2007PLC161534 and its registration number is 161534. Users may contact
G S Tele Communication on its Email address - [email protected].
Registered address of G S Tele Communication is KHASARA No 1124 FIRST FLOOR
LAL DORA RITHALA , NEW DELHI, Delhi, India - 110085.

Current status of G S Tele Communication Limited is - Active

COMPANY BASIC DETAILS

Company Name
G S TELE COMMUNICATION LIMITED

RoC
DELHI

Company Status
ACTIVE

Company Activity
TRANSPORT, STORAGE and COMMUNICATIONS

CIN
U64203DL2007PLC161534

Registration Date
02 APR 2007

Category
COMPANY LIMITED BY SHARES

Sub Category
NON-GOVT COMPANY

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Company Class
PUBLIC

Authorised Capital
2500000
PaidUp Capital
1435000

Last Annual General Meeting Date

2015-03-31

Latest Date of Balance Sheet

2015-03-31

CONTACT DETAILS

State
DELHI

PIN Code
110042

Country
INDIA

Address
KHASRA NO-53/10, NEAR ROHIL DHARAM KANTA OPP. ROHINI SECTOR-31, PARHALAD PUR BANGER NEW DELHI DELHI INDIA 110042

Email
[email protected]

DIRECTOR DETAILS

DIN Director Name Designation Appointment

00399586 GULSHAN KUMAR Director 02/04/2007
01788480 RAM CHAND ARORA Director 26/10/2007
07745932 PYUSH ARORA Director 23/02/2017
DETAILS UPDATED BY COMPANIES

Contact Person
Business Email
Business Adress
Company Short Name

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FAQ OF G S TELE COMMUNICATION LIMITED

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CIN OF G S TELE COMMUNICATION LIMITED
CIN (CORPORATE IDENTIFICATION NUMBER) NUMBER OF G S TELE
COMMUNICATION LIMITED IS U64203DL2007PLC161534.
INCORPORATION DATE OF G S TELE
COMMUNICATION LIMITED
CURRENT STATUS OF G S TELE
COMMUNICATION LIMITED
REGISTERED ADDRESS OF G S TELE
COMMUNICATION LIMITED

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 TEMINOLOGY: -

1. Compound Interest :- compound interest on the amounts of money you have deposited
or borrowed.

2. FICO Scores:- FICO Score is an acronym for fair Isaac Corp, the company that came up
with the methodology for calculating a credit score.

3. Net Worth:- Net worth is simply the different between assets and liability .

4. Asset’s allocation :- Asset’s allocation is where you choose to put your many.

5. Rebalancing :-Rebalancing is standard practice in any portfolio . it is the process of stock

and bound back to desired percentages.

6. stock option :- Stock option can be offered by companies as management incentives ,

7. Balance sheet:- A balance sheet is an important financial statement ‘

8. capital gain :- A capital gain is increases is the value of asset o investment .

9. Asset :- Assets are you own the future benefit to your business .

10. capital markets:- This is a market where buyers and sellers engage in trade of financial
assets .

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 OBJECTIVES OF THE STUDY

 To study the Indian Tax Structure.

 To study the different taxes Collected in India.

 To study the amount incurred on collection of taxes.

 To study the amount of revenue which is collected from different types of taxes.

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 SCOPE OF STUDY

 Scope of Taxation in India

 The Taxation Sector is one the fastest growing and rather dynamic career in choices in the
world.
 Irrespective of industry or a job position, every career sector checks for situation academic
background and work experience in a candidate.

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 NEED OF THE STUDY

 A Direct tax is compulsory directly on the taxpayer and paid directly to the
government by the ones on whom it is imposed.

 Direct taxes can help control inflation.

 Direct taxes are compulsory on income and profits, indirect taxes are collected on
goods and services.

 Direct taxes and indirect taxes are an interesting and significant area to conducting
research.

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 LIMITATIONS OF THE STUDY

 This study is conducted only on Direct and Indirect Taxation in India.

 Direct tax is progressive and Indirect tax is regressive.

 Taxes may be charged only for public purpose.

 The time period allotted for the collection of data was insufficient.

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CONTRIBUTION DURING SIP

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 CONRTIBUTION DURING SIP

1. WORK ON TALLY DURING SIP INTERSHIP PROGRAM: -

LEARNING: -
I have done my internship under CA firm where I have to do Tally work on daily basis. Workings like
recording ledgers, taxation work learning. Also, I have to show all those work to my CA on daily basis.
In 45 days under CA firm financial work has to be done.
I studied a lot of things and gain adequate knowledge about how the CA Firm works. The overall
experience working in the CA firm was overall good.

Brief Introduction to Tally Software

Tally ERP 9 is an Accounting Software designed and developed by the Tally Solutions Private Limited,
a Bangalore (India) based IT Solution Company. It is a kind of Application Software where the
accounting process is carried out mechanically through instructions given by the user with the selection
of graphical represented information of computer screen. This software is purely developed based on
the Accounting Principles and Mercantile Law fundamentals, for better management of Finance,
Logistics and Administration of Commerce and Trading, yet it doesn’t have any accounting
knowledge. This software is simple yet powerful and this is obviously Standalone Accounting
Software.

Introducing Ledgers: -
 A ledger is the most important part of you company’s financial records.

 It constitutes the records of each transaction, such as withdrawal or deposit of

money through vouchers.

 Since ledgers are the vital part of the company’s account, it is important that you
understand their needs.

 Ledgers are the actual account to which all individual transaction are allotted.

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 Creating ledger in Tally is very easy. What we have to maintain in the link
between ledgers and groups. This means that while creating ledger, we have to
maintain the group under which that particular ledger appears in the screen.

 Suppose when we are creating ledgers for salaries, we have to maintain that group
under which they item salaries displayed. The term ‘Salaries comes under the group
indirect expenses.

 When we are creating a particular ledger in tally a pop-up menu consisting of

various groups on the right side of the screen, we can select ‘indirect expenses’
from the list of groups.

2. Procedure in Ledgers:-

Create a Tax Ledger :-

Tax ledgers have to be created using the Duties and Taxes group. This group is
automatically used for the calculation of tax. The tax ledger holds the entire
automatic calculation for TDS tax deductions at the voucher’s entry level. It is
internally enabled to calculate tax. The option to specify the tax type is available
only for ledgers under the Duties and Taxes group.

The tax ledger master screen can be created by undertaking the following steps:

1. Click the Accounts Info, option in the Gateway of Tally menu. The Accounts
Info, menu appears.

2. Click the Ledgers options from the Accounts Info. menu. The Ledgers menu
appears. 3. Click the Create option from the Ledgers menu. The Ledger Creation
screen appears. 4. Type the name of the ledger besides the Name option.

5. Select the Duties & Taxes option from the List of Group menu beside the Under
option. On selecting the Duties and Taxes option, you will get the options related
to this type in the Ledger Creation screen.

6. Select the TDS type beside the Type of Duty/Tax option from the list Type of
Duty/Tax menu.

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7. Select the desired nature of TDS payment from the List of TDS Nature of Pym
menu beside the Nature of Payment option. In our case, we have selected Fees for
Professional or Technical Services.

8. Set the Inventory values are affected option to Yes. 9. Set the Cost centres are
applicable option to Yes.

10. Type the opening balance beside the Opening Balance (on I-Apr-2010) option.
In our case, we have typed 200000.

11. Click the Yes option from the Accept? message box to save the ledger. The
Ledger Creation screen appears.

12. Press the ESC key or click the Close button to go back to the Ledgers menu.

Setting statutory & Taxation Features :-

You can click the statutory & Taxation option in the Company Features menu to go to

the statutory & Taxation feature.

There are various fields/options in the statutory & Taxation window, which you have to

set according to your requirements. For example, the above figure, we have set Enable

Value Added Tax (VAT) to Yes because we this field in the ledger

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 1. Service Tax Ledgers; -

When you want to maintain a separate account for service tax collected without the

education cess and secondary education cess, you can create a ledger for service

tax.

1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create .

2. Enter the ledger Name .

3. Select Duties & Taxes as the group name in the field Under .

4. Select Service Tax as the Type of duty/tax .

5. Select Service Tax as the Tax head .

6. Define the Rounding method and select Statutory Information , as required. The

Ledger Creation screen appears as shown below:

7. Press Enter to save.

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2. Common Tax Ledger for Service Tax;-

You can create a single ledger for service tax which can be used to account for

service tax, education cess, and secondary education cess.

1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create.

2. Enter the ledger Name.

3. Select Duties & Taxes as the group name in the field Under.

4. Select Service Tax as the Type of duty/tax.

5. Select Any as the Tax Head from the List of Tax Heads.

6. Set the Rounding method, as required. The Ledger Creation screen appears as

shown below:

7. Press Enter to save.

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RESEARCH METHODOLOGY

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 RESEARCH METHODOLOGY

MEANING OF RESEARCH:

Research is a hardworking and systematic survey or study into a subject in order to discover or
revise facts, theories, applications etc.

MEANING OF METHODOLOGY:

Methodology is the system of methods used in a particular area of study or activity and followed
by a particular discipline.

RESEARCH METHODOLOGY:

Research methodology is a methodology for collecting all sorts of information and data
appropriate to the subject in question. The objective is to survey all the issues involved and
conducts institutional analysis. The methodology consists of the overall research design,
sampling procedure and field work done and finally the analysis procedure. The methodology
used in the survey consistent of sample survey using both primary & secondary data. The
primary data has been collected with the help of questionnaire as well as personal opinion book,
magazine, journals have been referred for secondary data. The questionnaire has been created
and presented by the researcher himself.

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 SOURCE OF DATA

• PRIMARY DATA

Data that has been collected from first-hand experience is called as primary
data. Primary data has not been published so far and is more reliable,
authentic and objective. Primary data has not been changed or altered by
peoples; therefore, its validity is greater than secondary data. Importance of
Primary Data is in statistical surveys it is necessary to get information from
primary sources and work on primary data.

Primary Data is not used for this study.

 SECONDARY DATA

Data collected from a source that has already been published in any form is
called as secondary data. The literature review in any research is based on
secondary data. It is collected by someone else for some other purpose but
being utilized by the investigator for another purpose.
This study is based on secondary data only. The data is collected through
different sources like RBI annual reports, department of revenue, ministry of
finance of government of India, articles published in newspapers, journals,
text books, internet sources, websites

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 DATA ANALYSIS
AND
INTERPRETATION

MEANING OF ANALYSIS

Data analysis involves the study of relationships or degrees of association

among several variables. the analysis is nothing but the ordering of data for
obtaining answers to research questions. it is the breaking down of statistics
and ordering them in this kind of way in orderto acquire a significant solution
to the research query. The tables and diagrams given below clearly explain our
analytical section.

MEANING OF INTERPRETATION

Data interpretation can be defined as applying statistical procedures to analyze

specific facts from a study of research. It refers to the techniques of drawing
inferences from an analytical look at of gathered facts. Interpretation of statistics
is completed with the aid of the usage of statistical tools like tables, Pie diagrams,
Bar graphs, and also the use of quantitative strategiesto derive a few meaningful
statistics. the subsequent description, tables and interpretation helpedto make an
analysis of my observe.

CLASSIFICATION AND TABULATION OF DATA

The data thus collected were classified according to the categories, comparative
tables, and thesummary tables were prepared.

STATISTICAL TOOLS USED FOR ANALYSIS

Out of the overall respondents, the respondents who replied logically had been
taken under consideration even as going into statistical info and evaluation of
records. The gear that has been used for studying records & inference drawing
are particularly statistical equipment like percent, ranking, averages, and so on.
As consistent with questionnaire and marketplace surveysI’ve discover distinct
responses from distinct people. in line with their responses, I analyze the findings
and draw positive comments.

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45 | P a g e
  ANALYSIS OF INDIAN TAX STRUCTURE: -
Following are the details of the amount elevated from Direct Taxes and
Indirect taxes bycombined both central and state governments.

YEAR 2020-21 2021-22 2022-23 2023-24 2024-25

Revenue Receipt
648966 703508 752231 859481 996185
Direct Tax

Revenue Receipt
1230177 1336518 1583252 1831969 2015743
Indirect Tax

Revenue generated from Direct & Indirect Taxes

2500000

2000000
2015743
1831969
1500000 1583252

1336518
1230177
1000000
996185
859481
703508 752231
500000 648966

0
2016-2017 2017-2018 2018-2019 2019-2020 2020-2021

Revenue Receipt Direct Tax Revenue Receipt Indirect Tax

INTERPRETATIONS: -
From the above table it is seen that there is more dependence on indirect taxes for
revenue collectionthan direct taxes. It is almost clear from the above chart that the
amount received from Indirect taxes is almost double from the amount received from
direct taxes. Over dependency on Indirect Taxes is clearly visible.

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PROPORTION OF DIFFERENT DIRECT TAXES
UNDER DIRECT TAXES HEADING FOR THE YEAR
2024-25

Name of direct tax Amount in crore %Age Share in Total

Direct Tax
Corporation tax 538745 55.41230221

Taxes on income other 433494 44.5867721

than corporation tax

Estate duty 0 0

Interest tax 0 0

Wealth tax 0 0

Gift tax 0 0

Land revenue 9 0.00092569

Hotel receipts tax 0 0

Expenditure tax 0 0

Amount in crore Name of direct tax

Corporation tax

Taxes on income other than

corporation tax

0% Estate duty
Interest tax Wealth tax

45% Gift tax

55%
Land revenue

Hotel receipts tax

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• PROPORTION OF DIFFERENT INDIRECT
TAXES UNDER INDIRECT TAXES HEADING:-

Name of direct tax Amount in crore %Age Share in Total

Direct Tax
Customs 245000 26.08236491

Union excise duties 405920 43.21368803

Service tax 275000 29.27612388

State excise duty 885 0.09421589

Stamp & registration fees 191 0.020333599

Sales tax 3300 0.351313487

Taxes on vehicles 213 0.022675689

Taxes on goods 11 0.001171045

& passengers
Tax & duty on electricity 25 0.002661466

Others 8787 0.935452002

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 FINDINGS

 There is a huge number of taxes in India and different collecting authorities causing
multiplicity of taxes in India.
 There is a vast dependence on indirect taxes for revenue generation. The amount
collected from indirect taxes is nearly two times the amount collected from direct
taxes.
 Both direct taxes and Indirect taxes take their own advantages and disadvantages.

 Under direct taxes, the most important components of taxes are corporation tax and
taxes on income.
 Under indirect taxes, the most important components are customs, excise duty and
service taxes.
 The amount expended on collection of taxes is growing year on year.

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 SUGGESTIONS

 Government of India should focus more on structural reforms than policy reforms.

 GST should be implemented soon to reduce the number of indirect taxes and
facilitate comfort of doing business in India.
 Administrative expenses incurred on Tax Collection needs to be brought down by
making decrease in the number of taxes and tax collection authorities.

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e
 CONCLUSIONS

Due to Multiplicity of taxes, there is unhappiness between citizens of India regarding

tax structure. Taxes by Union Government, State Governments and the local
governments have resulted in complications and harassment to the tax payer. He has
to connection several authorities and maintain separate records for each of them. An
Ideal Tax system must follow Adam smith’s canons of taxation but due to over
dependence on indirect taxes, the tax systems suffer from the problems like
Inequality, regressive, uneconomical, inflationary, etc. The Tax System has failed to
stop tax evasion and control the growth of parallel economy. White paper issued by
Indian government on black money in 2012tells that parallel economy exists the
same funds of Indian GDP.

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 BIBLIOGRAPHY

 https://toughnickel.com/personal-finace/Advantages-and-Disadvantages-of-Direct Taxes
➢ www.google.com
➢ www.wekkipidia,com
➢ http://www.archive.india.gov.in/business/taxation/index.php
➢ https://taxtaxes.knoji.com/advantages-and-disadvantages-of-directtaxes/
➢ http://finmin.nic.in/reports/IPFStat201314.pdf

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