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India V.A.T and Sales Tax
- The standard rate of VAT is 12.5%. There are reduced rates of 4% and 1%.
- The minimum annual turnover for V.A.T. registration is INR 500,000.
- V.A.T. returns are filed on a monthly or quarterly basis.
- Sales tax of 2% is imposed on transfer of goods between Indian states.
India Service Tax
- This tax is imposed on a defined group of services provided in India as follows: advertising services, consultancy services, banking, insurance and more.
- The tax imposed is 10.3% including CESS.
- Service tax is paid monthly/quarterly. Returns are filed each half year.
India Wealth Tax
- The tax is imposed in India on assets specified in the law such as houses, vehicles, plots of land. Individuals and companies are liable for the tax.
- The tax is not imposed on productive assets or income producing assets.
The tax, at the rate of 1%, is imposed only on assets with a value in excess of INR 3 million.
India Dividend Distribution Tax
Domestic companies paying dividends are subject to the tax.
The effective rate of the dividend distriubution tax is 16.609%.
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