Service Tax (India)
Taxes in India are levied by the Central Government and the state governments. Some minor taxes are also levied by the local authorities such the Municipality.
The authority to levy a tax is derived from the Constitution of India which allocates the power to levy various taxes between the Centre and the State. An important restriction on this power is Article 265 of the Constitution which states that "No tax shall be levied or collected except by the authority of law." Therefore each tax levied or collected has to be backed by an accompanying law, passed either by the Parliament or the State Legislature. In 2010-11, the gross tax collection amounted to 7.92 trillion, with direct tax and indirect tax contributing 56% and 44% respectively.)
Read more about Service Tax (India): Constitutionally Established Scheme of Taxation, Income Tax Department, Service Tax, See Also
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