Do you know one such word which makes a lot of us cringe when we hear it? Yes, I’m talking about one of the most dreaded words and it’s called tax. This word may bring out various emotions in different people. Some may dread it, some may fear it, while a percentage of us may also embrace it. In this article, we will find out more about the GST tax which was implemented in India in 2017. We shall also take a look at the best institutes for GST certification courses in Thane.
In simple terms, taxes are the amount of money that needs to be paid mandatorily to the government. The government levies a fixed percentage of charges and the same needs to be paid by individuals and organizations. The revenue that is collected is then used for public works to improve the infrastructure and facilities of a country or state.
Taxes are also a way of increasing the economy of a country and in return providing a better standard of living for its citizens. To get a better understanding of the various taxes, let us now dive further into the different types of taxes. There are mainly 2 types of taxes which are direct taxes and indirect taxes. These taxes are further subdivided into categories.
As the name suggests, direct taxes are those taxes that the taxpayers or organizations pay directly to the government. In normal cases, these taxes are levied on an individual’s income. Direct taxes cannot be transferred to any other person by the taxpayer or organization in question. It is the responsibility of the Central Board of Direct Taxes to govern this tax. A well-known example of a direct tax is the income tax. Let’s look at other direct taxes.
1. Income Tax
Almost everyone is quite familiar with income tax. Whether you are a working employee or a business person, paying income tax is an annual affair. The income tax is calculated as per the IT Act implemented in 1961. How much income tax needs to be paid depends on the tax bracket.
This tax takes into consideration an individual’s salary, investment, business, property, and other specificities. Income for salaried employees can be deducted via TDS which is (tax deducted at the source). For self-employed or business owners, the tax is imposed on the amount of income that has been declared to the Income Tax Department.
Income tax also provides exemptions on tax which is based on an individual’s age. For example, people under the age of 60 have an exemption limit of Rs. 2.5 lakh per annum, those between the age of 60 and 80 have a limit of Rs. 3 lakh per annum and the last bracket is for those above the age of 80, for whom the exemption limit is Rs. 5 lakh per annum.
2. Corporate Tax
Corporate tax is nothing but the income tax paid by an organization from its revenue. As per the Income Tax Act of India in 1961, both domestic, as well as foreign companies are required to pay taxes to the government. Irrespective of whether the company’s income comes from dividends, interest, or royalties, it is considered taxable. Corporate tax has a different tax bracket from that of income tax.
3. Capital Gains Tax
Capital gains tax is applicable in situations where you receive a lump sum amount of money. This money can be in the form of selling a property or a big investment. There are two types of capital gains, namely, long-term capital gains which are applicable for investments made for a period of more than 36 months, and short-term capital gains for investments made for less than 36 months.
The tax for both is calculated in a different manner as long-term capital gain is taxed at 20%, whereas short-term capital gains are taxed according to the income bracket under which an individual comes.
4. Securities Transaction Tax
This tax is charged against the stock market and securities trading. The securities transaction tax is paid every time you purchase or sell shares.
5. Perquisite Tax
Perquisite taxes are those which are levied on the different concessions and perks a company has offered to its employees. These perks may be in form of big compensations such as a house or a car for the employees’ use or in the form of smaller compensations such as phone bills, internet bills, fuel allowance, etc.
Benefits of Direct Taxes
The direct tax brings about some type of equity between the rich and the poor. While the poor are exempted from paying direct tax or their task slab is lower, the rich need to pay a tax that is in the higher bracket. This type of system cannot be implemented on indirect taxes as they are similar for every person irrespective of their income.
In a direct tax, a tax-paying individual knows the exact amount of tax he is required to pay. The tax collecting authorities are also aware of this amount and thus there is a certain assurance for both sides.
Direct tax is quite flexible. Whenever the government requires modifications, they can be easily tweaked. With the increase or decrease in an individual’s income, the tax will also be adjusted accordingly.
4. Inexpensive collection costs
Since this tax is collected directly at the source, the charges for collecting it are pretty low.
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Disadvantages of Direct T
Due to direct taxes taking away a lump sum amount of an individual’s income, this tax is not favored by many. Whenever there is an increase in the amount of direct tax to be paid, it upsets the people.
Direct taxes can be evaded by taxpayers by submitting false returns. In order to avoid this, the people need to be well educated and also have an ethical conscious towards paying taxes.
A large number of individuals in a country like India fall below the tax-paying slab, and therefore the government is not able to collect direct tax from them. Thus, the government is unable to nurture awareness related to the importance of taxes amongst such a crowd.
Indirect taxes are those taxes that are levied on people in an indirect form. These types of taxes are imposed mostly on goods and services. Such taxes are included in the price of goods, and then they are collected by various government bodies from the seller.
The Value Added Tax (VAT) is an example of an indirect tax. Indirect taxes unlike direct taxes do not have a tax slab. The same amount of tax is to be borne by individuals irrespective of their income. And therefore, indirect taxes may be a little harsh on the lower-income groups. Below is a list of a few common indirect taxes.
1. Service tax
The service tax is a tax charged on the public in return for the service they receive. It is the government that later collects this tax.
2. Sales tax
Whenever people go out shopping and buy necessities such as household commodities, clothing, etc. they are charged with a sales tax on the final bill. This tax is collected by the stores and then handed over to the government.
3. Excise tax
Here is another common indirect tax. Excise tax is imposed on consumers by companies on the products or goods manufactured by them. The companies will first pay the taxes and then charge the consumers during the purchase of such goods.
4. Customs tax
We all are very well aware of the fact that most of the imported products are quite expensive in the market. The main reason for this is due to the customs tax that is levied on them. Importers will first bare the tax on imported goods and then pass on the tax to consumers.
5. Entertainment tax
The entertainment tax is collected for all types of entertainment purposes such as amusement parks, movie theatres, sports and gaming activities, etc.
6. Value added tax
Value-added tax, more commonly known as VAT is levied on products that are sold directly to the consumer and which are movable.
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Benefits of Indirect Taxes
1. Mandatory taxes
With indirect taxes, nobody is exempted. Since the poor class is exempted from income tax, they contribute to the government when they pay indirect taxes on purchased items.
2. They are convenient
Indirect taxes are only paid when a purchase is done. Therefore, it is quite convenient as consumers are only paying as much indirect taxes as the amount of purchasing done.
3. Easy to collect
These taxes are relatively easier to collect for the government as they can collect them directly at the shops saving them a lot of time and effort.
Disadvantages of Indirect Taxes
1. No tax slabs
As there are no tax slabs in place for indirect taxes, every person ends up paying the same amount of tax for respective goods. This may become somewhat of a burden for the lower-income groups.
Indirect taxes tend to be cumulative because various intermediaries may charge high taxes during every transaction. This in turn leads to an increase in the final price of the product.
3. Lack of awareness
There is a countless number of people who are unaware of the fact that they are paying taxes since they are hidden in the price. Due to this, there is a lack of awareness regarding tax in general.
With this brief information regarding taxes in general, let us now turn our attention toward GST. You will come to know hereafter exactly what is GST and why you should go through some of the top GST certification courses in Thane.
Goods and Service Tax (GST)
The goods and service tax known more commonly as GST is a tax made to simplify the complex taxation policy of India. It applies to the sales of products and goods in India. GST is thus, an indirect tax that aims to replace many taxes coming under indirect taxes such as excise duty, VAT, service tax, etc. This tax is pertinent for the whole of India.
Intent and Benefits of GST
1. To have one tax for one nation
Before GST came into effect, there were many different indirect taxes. However, its introduction has replaced all these taxes to become one single tax. This means all states of the country end up paying the same amount of tax for a service or product.
2. To incorporate all taxes
As we have seen earlier, there were several indirect taxes of which some were under the control of the state while others were under the Centre. There was a lack of a single consolidated tax on both goods and services and this was made possible with GST.
3. To prevent cascading effect of taxes
Previously, due to the different types of taxes at every stage, the final price of the goods or services tended to be higher. With GST, the cascading effect of taxes has been nullified and therefore the overall final price of the same goods has been reduced.
4. To reduce tax evasion
One of the most important goals of GST is to bring about a transparent tax system leading to the overall reduction of tax evasion.
5. Simple online procedure
With the help of technology, the process of registration, tax payments, and filing returns are quite easy due to the simple online procedure. This is advantageous especially for startups as it saves them from running behind various tax registrations such as VAT, service tax, etc. Overall, the process is not only effortless but also quicker since taxpayers are no longer required to check with the tax administration.
6. Less burden on smaller companies
There is an exemption on paying GST for small-scale companies that have an annual turnover of less than Rs. 20 lakhs.
With This Brief Overview of GST, Let Us Now Turn Our Attention to Some of the Most Popular GST Certification Courses in Thane.
1. IIM Skills
When it comes to great online courses, IIM Skills is one of the best places to go. This course is one of the finest GST certification courses in Thane. They have a wonderful GST practitioner course that boasts of features such as 16 hours of lectures, practical assignments on weekly basis, free e-books, and invoicing tools and software.
They also have a dedicated placement cell and many freelance opportunities. At the end of the course, you receive the IIM Skills Master GST Certification which is recognized by the MSME Government of India.
The course will offer pre-recorded online sessions that cover all the latest developments in GST. By the end of this course, you will surely know anything and everything related to GST. All such quality aspects make IIM Skills one of the most sought-after GST certification courses in Thane.
2. Laqshya Institute
The GST course at Laqshya institute is a practical training course. This course enables their students to become top GST practitioners and experts in the field. They offer classroom training and tutorials in their GST course for beginners. However, they also have the option of online training via live classes. At the end of each session, you will be provided with the training video.
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3. Excel Computer Institute
Excel Computer Institute has been in the business of online training for more than 20 years and boasts of one of the best GST certification courses in Thane. Their course comes packed with features such as job assistance and affordable fees.
This course will cover the basics of accounting, bookkeeping, accounting using Tally, Advanced Microsoft Excel training, Direct & Indirect Tax, Online-banking, and Financial Management. All in all, this makes for one of the greatest GST certification courses in Thane.
The ITAA institute was founded in 2016 behind a rich experience of over 15 years in accounting and recruitment. ITAA offers a GST Pro course which consists of more than 35 hours of training, includes 7 modules, and certification from ITAA. The course is conducted by qualified chartered accountants.
This course gives you an all-out exposure to GST with practical experience and real industry scenarios. Along with a certificate, you will gain advanced GST knowledge, learn how to assess and reply to GST notices, as well the various nuances and compliances of GST. Thus, the ITAA institute is one more well-known institute when it comes to the best GST certification courses in Thane.
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5. Henry Harvin
The GST practitioner course from Henry Harvin is another one of the many GST certification courses in Thane. You will get a two-way interactive training of 32 hours. Other benefits include regular boot camps for the next 12 months along with internship assistance and placement support.
Once the course is completed, you will receive the GST practitioner certification from Henry Harvin which is recognized by the government of India. Thus, when it comes to great GST certification courses in Thane, Henry Harvin is another leading institute.
1. Is doing GST certification courses in Thane beneficial?
With the new tax regime, almost every business is in need of a professional GST practitioner. Therefore, GST practitioners have a high demand. Further, the GST course will also add merit to the CV of accounting and finance professionals.
2. How favorable are the job opportunities after doing GST certification courses in Thane?
By doing a GST course, there will be a great chance to get a job with a high salary, career growth, and promotion. As all businesses are looking for professional GST practitioners.
3. How many different GST courses are there?
The Institute of Chartered Accountants of India (ICAI) provides 2 types of GST courses. The first is a Certificate Course and the second is an Advanced Certificate Course on GST.
GST is a part of the newer tax system and all types of businesses require professional expertise in dealing with it. There is a good market for individuals who choose to pursue this career path and sound knowledge of GST will no doubt be advantageous. If you are one of those interested in learning more about GST, then the courses listed above are some of the reputed GST certification courses in Thane, and they will surely help you grow your professional career.