Need of Direct Taxes

As we all aware regarding the regressive nature of Indirect taxes, that’s why need of direct taxes arises. Tax structure needs to be more balanced because poor people get hurt by indirect tax.

Direct taxes include income tax which is based on the income and profit of a person. Indirect taxes are taxes impose on the goods and services irrespective of income of the person.

India’s federal and state taxes impose at different supply chain stages and twice the amount of taxation, while forcing transporting vehicles to spend nearly one-fourth of time on border checks and inspections.

In order to get support from states that fear losing revenue, one percent additional levy by states on the cross-border transport of goods granted by the government, it is mandatory for one company transporting from one plant to other.

There is a huge impact of foreign technology on the development of nation like India. The cost of using such technology is very high, that’s why the same technology is not used in India. In order to reduce cost of technology, the rate of withholding tax on royalty payments should be reduced to zero. It will dramatically reduce the cost of Indian arm and other equipment.

It would reduce the cost of Indian arm and hassles in consent with foreign technology providers. According to Indian Tax System, any non resident whose income is sourced from India, need to file ITR .Indian government is applying investor friendly schemes to uplift Indian economy by providing relief to foreign investors by classifying ITR non mandatory for companies which are located outside India and receiving royalty and interest from India.

Ruchi Anand & Associates, we are all about service. We are tax consultant in india. We help companies to start business in India and provide tax advice to organizations. We are one of top Indian Chartered Accountant Auditing Firms based in India at New Delhi. We provide Audit and Assurance Services, Risk Advisory and Tax Services for improving your financial efficiency, accuracy & stability.

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