There was no value added tax in India until April 1, 2005. Instead a sales tax was imposed on sales within the country and inter-state sales within India.
From 1.2.2005 V.A.T replaced the sales tax. The standard rate of VAT is 12.5%. There are reduced rates of 4% and 1%.
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% plus 2% cess.
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 1.5m.
