Ensuring tax compliance is a fundamental responsibility of any business, regardless of its size or industry. Navigating the intricacies The Indian tax system, which is both complex and subject to frequent changes, requires staying updated on the latest regulations.
Here, we highlight some of the essential taxes that businesses in the Philippines should know about:
Value Added Tax (VAT): VAT is a consumption tax that applies to most goods and services sold in India. The applicable VAT rate varies depending on the specific type of goods or services sold.
Income Tax: Income tax is levied on the profits earned by both businesses and individuals. The rate of income tax is determined by the amount of income earned.
Taxes withheld from employees: Employers are required to withhold taxes from the wages of their employees. The amount of tax to be withheld depends on the income level of the employee and their filing status.
Goods and Services Tax (GST): GST is a relatively new tax system that has replaced VAT and other indirect taxes in India. It operates on a destination basis, meaning that tax is paid at the place where the goods or services are consumed.