Taxation: GK, Current Affairs, Questions, Trivia and News

UK to charge 2% tax on digital services

United Kingdom recently announced that it would start charging a 2% tax on digital services from 1st April this year. The tax is to be imposed on revenue from digital services such as search and advertising. This tax will apply to firms with global sales of more than £500 million with at least £25 million ..

Tweaks to the FPIs in Union Budget

The Indian Government has made a few tweaks to the norms of foreign portfolio investors (FPIs) to attract funding for the Indian capital market. What has happened? The Indian Government had, in the recent Union Budget, announced that increased surcharge will now be applicable to the FPIs. The Indian Government had levied an increase in ..

2 years of GST

The landmark one-nation, one-tax reform, the Goods and Services Tax (GST) was introduced on July 1, 2017. In its two year journey, it has shown some hiccups, a little more challenges and a lot of potential for future growth. What is GST? The Goods and Services Tax is a destination based, value-added tax on the ..

What is the meaning of Assessed Value?

Assessed Value refers to the assessment of the property for its monetary worth for the purpose of taxation. This price is known as its assessed value. The assessment is usually done annually keeping in mind common factors like the value of the property and other market conditions in the neighbourhood. The assessment is done by ..

Tax Reforms in India

Prior to the liberalization of Economy, India’s tax regime suffered numerous problems. These problems which were in vogue in 1960s and 1970s were as follows: There was a high degree of progressiveness (rich needed to pay exorbitant taxes). On the other hand, tax collection efficiency was very low (rich were smart enough to evade tax). ..

Progressive, Regressive and Proportional Taxes

There are three kinds of the taxes on the basis of their quantum / ratio of charging viz. regressive tax progressive tax and proportional or flat tax. Regressive Tax A regressive tax is the one in which tax rate decreases as the amount subject to taxation increases; and the tax rate progresses from high to ..

Capital Gains Tax: Meaning & Current Government Policy

A recent speech of prime minister had started speculation that government may impose long term capital gains tax in the upcoming budget. Capital gain refers to the gain or profit from the sale of property or an investment. Investment may be in shares, equity, gold, real estate or valuables like paintings {a prelims question was ..

Implications of GST as a Destination Based Tax

Indirect taxes can be either origin based or destination based. Origin based tax (also known as production tax) is levied where goods or services are produced. Destination based tax (consumption tax) are levied where goods and services are consumed. In destination-based taxation, exports are allowed with zero taxes whereas imports are taxed on par with ..