Question

Other than income tax, list the taxes have you paid in the last month. For each tax you list tell me how you paid it and what the rate of tax was (I would assume that there would be at least three types of taxes you have paid over the past month).

Answer 1

1. GST : Goods and Services Tax ?

GST is an indirect tax levied on the supply of goods and services. This law has replaced many indirect tax laws that previously existed in India.

GST is one indirect tax for the entire country.   

There are 3 taxes applicable under this system: CGST, SGST & IGST.

• CGST: Collected by the Central Government on an intra-state sale (Eg: Within Uttar Pradesh)
• SGST: Collected by the State Government on an intra-state sale (Eg: Within Uttar Pradesh)
• IGST: Collected by the Central Government for inter-state sale (Eg: Uttar Pradesh to Tamil Nadu). Goods and services are divided into five tax slabs for collection of tax - 0%, 5%, 12%,18% and 28%. Procedure for payment : Step 1 – Login to the GST Portal. Enter your username, password, and captcha code. Step 2 – Once you log in go to Services > Payments > Create Challan.

  Step 3 – Enter the amounts and select the method of payment i.e. e-payment, over the counter or NEFT/RTGS. Click on Generate Challan once all the details have been filled in.

  There are 3 methods of payment here:

• Internet banking and debit/credit cards of authorized banks
• Over the counter payment through authorized banks
• Payment through NEFT/RTGS from any bank.

Step 4 – A summary page will appear containing all the details of the challan. Select the ‘Mode of Payment’. You can either choose ‘Over The Counter’ to make payment by going to the bank in person or choose ‘E-Payment’, ‘NEFT/ RTGS to make online GST Payment. Click on ‘MAKE PAYMENT’.

However, there is a limit of Rs. 10,000/- per challan, for over the counter payment through authorized banks.

Step 5 – Make an online payment of GST through Net-Banking or take a printout of the challan and make payment in Bank.

Once the payment is made you will receive a challan containing all the details of tax paid. Thereafter the tax paid challan (CIN) will be credited to the cash ledger account of the taxpayer.    2. Property tax : It is also known as ad valorem tax, is imposed on the value of real estate or other personal property. Property taxes are usually imposed by local governments and charged on a recurring basis. For example, homeowners will generally pay their real estate taxes either once a year or as a monthly fee as part of their mortgage payments.

Individuals wishing to pay their Property Tax Online need to follow the following steps:

1. Log onto the official website of their municipality/city corporation.
2. Choose the tab indicating property tax and navigate to the payment option.
3. Choose the right form (either 4 or 5), based on the category under which an individual’s property falls. These forms are used to determine if any changes have been made to a property in question.
4. Choose the assessment year. This is the year for which property tax needs to be calculated and paid. Most corporations provide an option to clear backlogs in property tax payment.
5. Individuals will then be required to fill in their property identification number and any other relevant document pertaining to their property (zone under which it falls, property type, etc.) including the owner’s name.
6. Once all relevant information has been entered, individuals can choose the mode of payment, which could be credit/debit cards or internet banking.
7. Once payment is made individuals can take a print out of the challan for their reference.

Note: These are the basic steps involved in paying property tax online and could vary depending on the city/town corporation.

The formula used by Mumbai Municipal Corporation is given below:

Property tax = base value × built-up area × Age factor × type of building × category of use × floor factor.

3. Entertainment Tax : It forms a part of the tickets that we buy for watching movies or big entertainment shows. Entertainment tax applies to the following categories of entertainment ; Exhibition, Activities related to sport, Amusement Park, Arcade, Celebrity Stage Show, Theatre Show, Video Games. The rates of entertainment tax in India varies from one state to another. Rate is 30% - 40% which is charged in Uttar Pradesh.

Payment of this tax is already deducted in the movie tickets or the event tickets that the customer purchases.