A Project Report On Taxation

Table of Contents

A Project Report On Taxation

For any research assignment, proper planning is required and the

same holds true in the case of the present study. This project is titled “Service tax & Excise Duty”. The reasons behind choosing this project is that I find there is a very interesting topic because it is the biggest source of the finance for the government and also I have done my summer internship in the company which is related to the taxation that is Idemitsu Lube India Pvt. Ltd.

Service Tax :

Service means any activity carried out by a person for another person for consideration and includes a declared service. But,

It must be an actor.
It must be done by a person for another person.
There must be a consideration for the provision of service.
Includes a declared service.

Excise Duty :

Excise duty is a type of tax charged on goods produced within the country (as opposed to customs duties, charged on goods from outside the country).

Source of revenue for the government to provide public service.

For the liability of duty of central excise to arise, the item in question should not only be goods it should also be excisable goods.
Goods become excisable if and only if it is mentioned in the Central Excise Tariff Act 1985.
Goods must be movable. Duty cannot be levied on immovable property. Central excise duty cannot be imposed on plant and machinery.
Goods must be marketable.T he goods must be known in the market and must be capable of being bought or sold.
The liability to pay tax excise duty is always on the manufacturer or producer of goods.

There are three types of parties who can be considered as manufacturers:

Those who personally manufacture the goods in question
Those who get the goods manufactured by employing hired labor.
Those who get the goods manufactured by other parties.

NEED FOR THE STUDY

The purpose of the study is to get detailed knowledge about Service Tax & Excise Duty in India.
The purpose of the study is helping to Service Provider to briefly understand the need for charging Tax and the benefits out of that.
Need to understand how Government raises their fund to run government and provide services to the public.