What you need to know
The indirect tax system operating in India is extremely complex, with a number of different taxes applicable across the various states. These are VAT, CMS, and service tax. GST is due to be introduced in 2017.
- Note that if certain supplies of services are made by a non-established supplier, GST will be remitted by the customer.
- The application of the taxes and compliance obligations for businesses largely depend on the nature of transactions, along with the state, and status of the customer.
- Indirect taxes are due upon the importation of goods into India.
- A non-established business would need to register through a local representative).
- VAT registration thresholds are dependent on State.
- VAT returns: Monthly – Returns due on 15th of month following the end of period.
- Service tax: Half yearly – Filings due on 25th of month following the end of period.