India has a well-developed three-tier Federal tax structure comprising of the Union Government, the State Governments
and the Urban/Rural local bodies. Taxes and duties are levied by the three tiers of Government, in accordance with the
provisions of the Indian Constitution.
• The Union Government is primarily responsible for taxes on Income, Custom Duties, Central Excise and Service Tax
• State Governments are responsible for levying State Excise, Stamp Duty, VAT (Value Added Tax), Land Revenue and Professional Tax
• The local bodies are also authorised to impose tax on properties, Octroi and many more
Tax is paid directly to Government by the person on whom it is imposed. Ex: TDS, TCS etc.
Tally.ERP 9 supports the following direct taxes:
The Tax whose burden can be shifted from the assessee to other person is known as Indirect Tax. Eg- VAT, CST, Service tax, Excise Duty, Custom Duty etc.
Tally.ERP 9 supports the following indirect taxes:
• Excise for Manufacturer
• Excise for Traders
• Service Tax