According to the tax laws in India, the Central Government is responsible for levying the income tax, central excise tax, custom duties and the service taxes as well. In this section, the Central Government does not deal with the agricultural tax. The genre of state government is a bit different. Here they deal with the agricultural tax of the concerned state. State also takes care of VAT which stands for Value Added Tax, and in some cases where VAT cannot be applied the state has to take care of the sales tax concerns. Professional taxes, land based revenues, state excise and duty on stamps are some of the other wings of taxations aptly taken care by the state government.
The tax laws in India are stringent but they are not difficult to deal with. The most significant body which remains accountable for all tax regulation and collection is the Central Board of Direct Taxes. This is a part of the Revenue Department which is completely managed by the Ministry of Finance. The central or the state government deals with all tax related matters and the law making responsibility entirely lies with the Parliament. One important thing one must keep in mind is that no legal authority can create, charge or collect any sort of taxes. However, the entire process of taxation has been absolutely rationalized in India for the perfect understanding for all class of people.
Trade Law of India
Foreign trade in India includes all imports and exports to and from India. At the level of Central Government it is administered by the Ministry of Commerce and Industry.
The foreign trade policy is a regular feature for India. The Government of India bears a comprehensive outlook towards the policies with any foreign country.
The foreign trade policy provides the overarching framework for catalyzing India’s exports. The item-wise export and import policy is specified in India Trade Classification, Harmonized System [ITC (HS)] notified by the Director General of Foreign Trade (DGFT).
Penalties for export control violations may include corporate fines, revocation or suspension of export privileges, and individual fines and/or imprisonment of responsible personnel. Experienced counseling is essential to highlight the mitigating circumstances and to advise on the export compliance and enforcement process.
This policy has options to enhance industrialization and give rise to more and more entrepreneurship in trading with other countries. The strategies are also being simplified so that the legal steps are simple and the transaction cost is low and reasonable. The simple laws related to the duties and levies are also required and should be included in the policy of exporting goods.
Foreign Trade Policy & Export Promotion Schemes
The Institute of Business Laws, in association with Laksjmikumaran and Sridharan is organizing seminars on Foreign Trade Policy and Export Promotion Schemes to guide exporters, importers, manufacturers and service exporters. The seminars are being held in the following places:
These seminars will focus on the Annual Supplement to the Foreign Trade Policy, introduced this year, and the large scale changes in both policy and procedures.