TAX SYSTEM IN INDIA-AN OUTLOOK

The various kinds of Indirect taxes and duties levied in India, at the State and Central level can be illustrated as under:

Both the Customs and Excise duties are levied and administered by the Central Government. While the Customs duties are levied and collected by the Central Government, the Excise duties are shared by the Central Government with the State Governments.

The State sales tax is levied and collected by the states on all intra state transactions. Central Sales Tax is levied by the Central Government and collected by the States and such levy is restricted to interstate sales originating in the concerned State.

The former is regulated by the concerned State Sales Tax Act, while the Central Sales Tax is regulated by the Central Sales Tax Act, 1956.