What is GST?

Goods and Services Tax -- GST -- is a comprehensive tax levy on manufacture, sale and consumption of goods and services at a national level.

Through a tax credit mechanism, this tax is collected on value-added goods and services at each stage of sale or purchase in the supply chain.

The system allows the set-off of GST paid on the procurement of goods and services against the GST which is payable on the supply of goods or services. However, the end consumer bears this tax as he is the last person in the supply chain.

Experts say that GST is likely to improve tax collections and boost India's economic development by breaking tax barriers between States and integrating India through a uniform tax rate.

HAPPY NEW YEAR

Corporate Dividend Tax (CDT)

Features of CDT:
(a) CDT is in addition to Income-Tax chargeable in respect of the Total Income of a Domestic
Company. CDT shall be payable even if no Income-Tax is payable by the Domestic Company
on its Total Income.
(b) CDT is chargeable on any amount declared, distributed or paid by such Company by way of
dividends (whether interim or otherwise) on or after 1st June, 1997. The dividends chargeable
to CDT may be out of the Current Profits or Accumulated Profits.
(c) The rate of CDT is as given by the Finance Act for the relevant previous year.
(d) CDT is payable to the credit of the Central Government within 14 days of – (i) declaration of
any dividend; (ii) distribution of any dividend, or (iii) payment of any dividend, whichever is the
earliest.
(e) CDT paid shall be treated as the final payment of tax on the dividends and no further credit
therefor shall be claimed by the Company or by any person in respect of the tax so paid.