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  • Category: Government

    What are the major taxes levied by the Governments?


    Do you have a query about types of taxies levied by the central and state government? Want to get all the required information here? Check out responses from our experts on this Ask Expert page.

    I have three basic questions:

    (a) What are the major three different types of taxes which give maximum earnings to the Central Government?

    (b) What are the major three different types of taxes which give maximum earnings to the State Governments?

    (c) What are the major three different types of taxes which give maximum earnings to the municipal bodies/corporations/panchayats?

    Kindly reply point-wise.
  • Answers

    4 Answers found.
  • (a) What are the major three different types of taxes which give maximum earnings to the Central Government?

    Ans: The central government imposes and gets the maximum income in the following ways.
    1. Income tax: Income Tax is mainly collected by the central government. This will be on individuals or entities that are having income above the taxable limit.
    2. Custom Duty: Collected by the Central Board of Excise and Customs (CBEC). This department is under the Department of Revenue, the Ministry of Finance, Government of India. This tax is levied on goods imported
    and exported to and from India.
    3. Excise Duty: This is an indirect tax levied on those goods which are manufactured in India and are meant for home consumption. This excise duty has become a part of GST now and as such, there is no separate excise duty.
    Petroleum products will not be covered by this GST and it has special taxation and the taxes on petroleum products will be for both the central and state government.


    (b) What are the major three different types of taxes which give maximum earnings to the State Governments?

    Ans: 1. Vehicle taxes: the tax on vehicles purchased will be a source of income for the state government. Any vehicle registered in the state should pay yearly tax but now it is life tax to the vehicle that is for tax for 15 years the vehicle. In addition to this, the vehicles which are registered in other states for commercial purposes have to pay entry tax if they enter into the states where they don't have permission to enter.
    2. GST: Goods and service tax paid by the customer will include the tax that is to be paid to the state government.
    3. Other taxes: The state government will collect tax on the liquor that is being sold in their state. Similarly, states will impose a tax on petroleum products and alcohol products and the percentage will vary from state to state.


    (c) What are the major three different types of taxes which give maximum earnings to the municipal bodies/corporations/panchayats?

    Ans: 1. Property tax and property transfer tax.
    2. Professional tax
    3. water tax.[

    drrao
    always confident

  • The item-wise answer to the query is as follows -
    (a) What are the major three different types of taxes which give maximum earnings to the Central Government?

    Major three taxes imposed by Central Government are -
    (i) Customs Duties - All the goods imported or exported out of the country are subject to a levy of a kind of customs duty tax. This tax varies from item to item and is sometimes quickly changed to manage the balance of trade conditions of the country. The revenue generated by customs duty is of the order of Rs 1,10,000 crore.
    (ii) Excise Duties - This is levied on all the goods (except liquor and narcotics on which the state Govt collects tax) manufactured in India. The rate of Excise Duty varies from 8 to 24 % depending upon the category of the product. The revenue generated from this is of the order of Rs 3,60,000 crore.
    (iii) GST - This is levied on the sale of all the products and is a very big revenue achiever for the Govt. The revenue generated through this route is of the order of Rs 5,10,000 crore. Out of this centre has to share 50% with the states where the sale was made.

    (b) What are the major three different types of taxes which give maximum earnings to the State Governments?

    Major three areas in which state Govt collect taxes are as under -
    (i) Stamp duty - This is a tax levied on the transfer of the property, registration of the property, anything related to court matters, affidavits, marriage registration etc.
    (ii) GST - The state share of GST out of the total GST is one of the major revenue generators for the states. The GST collections are increasing day by day so this is a very important revenue source for the states.
    (iii) Entertainment tax - The state levies entertainment tax on all the entertainments and amusements in the state like cinema halls, fun places, amusement centres etc.

    (c) What are the major three different types of taxes which give maximum earnings to the municipal bodies/corporations/panchayats?

    Following are the major areas where good revenue is collected by municipal bodies -
    (i) Property tax - These are levied by the municipal bodies and are a good source of Govt revenue for them.
    (ii) Professional tax - A tax is levied on each employed person above a certain salary limit based on the profession of the employed people in the state.
    (iii) Tax on advertisement - The municipal boards get a good amount of revenue through tax collected on advertisements during the municipal limits like hoardings, posters, ad boards etc.

    Knowledge is power.

  • Here, I an giving step by step answer as per your query which are as follows:-
    (a) What are the major three different types of taxes which give maximum earnings to the Central Government?
    There are two kind of tax in india- Direct tax and lndirect tax. Direct tax includes income tax, real property tax, personal property tax, and taxes on assets. Indirect tax includes excise duty, customs duty, and Value-Added Tax (VAT) etc.
    1. Excuse duty- This tax is levied on goods produced within the country. It is a tax on the production or sale of a good. It is also known as the Central Value Added Tax (CENVAT).
    2. Custom duty- This tax are levied on goods when they are transported across international borders. In general words, it is the tax that is levied on import and export of goods. The government uses this duty to raise its revenues, safeguard domestic industries, and regulate movement of goods.
    3. GST- GST means goods and services tax (GST). It is a tax on goods and services sold domestically for consumption. It includes the final price and paid by consumers at point of sale and passed to the government by the seller. It is a common tax which is used globally.
    (b) What are the major three different types of taxes which give maximum earnings to the State Governments?
    1. Income tax- This tax is imposed on individuals or entities in respect of the income or profits earned by them.
    2. Stamp duty and registration- This tax is levied on the sale of the property, registration of the property,marriage registration and other court related matter etc.
    3.GST - It is one of the major source of income for state government. The state collects good money from GST.
    (c) What are the major three different types of taxes which give maximum earnings to the municipal bodies/corporations/panchayats
    1.Property tax - It is good source of income for municipal bodies. It is the annual amount paid by a land owner to the local government or the municipal corporation of area. It includes all tangible real estate property, house, office building and the rented property.
    2. Professional tax- This tax is levied on all kinds of professions, trades, and employment and levied based on the income of profession, trade and employment.
    3.Advertisement tax- Municipal bodies collect good amount of revenue through advertisement such as poster, ad, hoarding etc

  • The government would run smoothly on receipt of taxes from the tax payers through the different heads. The amount received by way of tax money is to be used in the different areas . It consists of three tuyere structures inclusive of three tuyere structure inclusive of Central, State and Municipal Bodies.
    Now considering the taxation structure of India, it comprises both Direct Tax and Indirect Tax.
    1) Direct Taxes - These are the taxes levied to the individuals and are paid directly to the Government. CD BT is responsible for the governance of this tax. Some of the direct taxes are as follows-
    1) Income Tax
    2) Wealth Tax
    3) Gift Tax
    4) Capital Gain Tax
    5) Corporate Tax
    6) Securities Tax
    Of all, the Income Tax is the most common tax collected from the employees working in areas in governmental or otherwise who pay taxes according to existing taxation structures consisting of different slabs.
    Again there are certain Indirect Taxes such as Sales Tax, Value Added Tax, Custom Duties, Toll Tax and Octroi Duty.
    There are three statuary bodies having rights to collect since the Indian Constitution has conferred the rights to them listed as follows-
    1) Central Government- It is responsible for the collection of Income Tax, Custom Duties and Central Excise Duty.
    2) State Government- It would collect taxes on agricultural income, state excise duty, VAT etc.
    3) Local Municipal Authority - This agency would collect taxes for water consumption and for the inherited property by the individuals.
    Way back to 2017, Goods and Service Tax has been introduced by the Central Government and the same will be applicable in case there is transfer of ownership in the supply chain. It consists of three components given below -
    1) Central Goods Service
    2) State Goods Service Tax or Union Territory Service Tax.
    3) Integrated Goods Service Tax.


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