Taxation – simply explained !

1)  Qus.: What are you doing?

Ans.: Business.

Tax : PAY PROFESSIONAL TAX

 
2)      Qus.: What are you doing in Business?

Ans.: Selling the Goods.

Tax : PAY SALES TAX

 
3)      Qus.: From where are you getting Goods?

Ans.: From other State/Abroad

Tax : PAY CENTRAL SALES TAX, CUSTOM DUTY & OCTROI

 
4)      Qus.: What are you getting in Selling Goods?

Ans.: Profit.

Tax : PAY INCOME TAX

 
5)      Qus.: How do you distribute profit ?

Ans : By way of dividend

Tax : PAY DIVIDEND DISTRIBUTION TAX

 
6)      Qus.: Where you Manufacturing the Goods?

Ans.: Factory.

Tax : PAY EXCISE DUTY

 
8)      Qus.: Do you have Staff?

Ans.: Yes

Tax:  PAY STAFF PROFESSIONAL TAX

 
9)      Qus.: Doing business in Millions?

Ans.: Yes

Tax : PAY TURNOVER TAX   ?

Ans : No

Tax : Then pay Minimum Alternate Tax

 
10)    Qus.: Are you taking out over 25,000 Cash from Bank?

Ans.: Yes, for Salary.

Tax : PAY CASH HANDLING TAX

 
11)    Qus.: Where are you taking your client for Lunch & Dinner?

Ans.: Hotel

Tax : PAY FOOD & ENTERTAINMENT TAX

 
12)    Qus.: Are you going Out of Station for Business?

Ans.: Yes

Tax : PAY FRINGE BENEFIT TAX

 
13)    Qus.: Have you taken or given any Service/s?

Ans.: Yes

Tax : PAY SERVICE TAX

 
14)    Qus.: How come you got such a Big Amount?

Ans.: Gift on birthday.

Tax : PAY GIFT TAX

 
15)    Qus.: Do you have any Wealth?

Ans.: Yes

Tax : PAY WEALTH TAX

 
16)    Qus.: To reduce Tension, for entertainment, where are you going?

Ans.: Cinema or Resort.

Tax : PAY ENTERTAINMENT TAX

 
17)    Qus.: Have you purchased House?

Ans.: Yes

Tax : PAY STAMP DUTY & REGISTRATION FEE

 
18)    Qus.: How you Travel?

Ans.: Bus

Tax : PAY SURCHARGE

 
19)    Qus.: Any Additional Tax?

Ans.: Yes

Tax : PAY EDUCATIONAL, ADDITIONAL EDUCATIONAL &

SURCHARGE ON ALL THE CENTRAL GOVT.’s TAX !!!

 
20)    Qus.: Delayed any time Paying Any Tax?

Ans.: Yes

Tax : PAY INTEREST & PENALTY

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