CAPITAL EXPENDITURE (CAPEX)

“It is the Expenditure to acquire /

upgrade buildings or equipment.
This expenditure is for the
acquisition of long term assets”.
 REVENUE EXPENDITURE

“These are short term expenses to

meet the ongoing operating costs of
running a business i.e., operating
expenses”.
 CAPITAL REVENUE
EXPENDITURE EXPENDITURE
 CAPITAL REVENUE
EXPENDITURE EXPENDITURE
 CAPITAL REVENUE
EXPENDITURE EXPENDITURE
 CAPITAL REVENUE
EXPENDITURE EXPENDITURE
 EXCHANGE RATES
APPRECIATION &
APPRECIATION DEPRECIATION
Rs. 40 per dollar

January
2016

Rs. 68 per dollar

DEPRECIATION

THIS IS BECAUSE
OF MARKET
FORCES
Rs. 100 per dollar
 EXCHANGE RATES
DEVALUATION &
REVALUATION REVALUATION
Rs. 40 = 1 Dollar

January
2016

Rs. 68 = 1 Dollar

DEVALUATION

HERE, GOVERNMENT
FIXES THE RATE
Rs. 100 = 1 Dollar
MEMORANDUM OF UNDERSTANDING (MoU)

 It is most akin to and formal alternative to Gentleman’s

Agreement.
 It is intended common line of action.
 It may lead to agreement in later stages.
 MoU cannot be enforced legally.
 It is the first stage in the formation of a formal contract.
 It shares common intent.
TAXATION BY GOVT. OF INDIA

These are the taxes levied by

the Govt. of India

DIRECT TAX INDIRECT TAX

NOTE
Only taxes levied by
the Govt. of India are
taken. Various taxes
by the State
Governments are not
discussed here.
 DIRECT TAX

These are the taxes directly levied on

the income / profits of the person / firm,
who directly pays. It is progressive in
nature.

Direct taxes are

1. Personal Income Tax
2. Corporation Tax
It looks at Direct Taxes
3. Gift Tax
4. Wealth Tax (Abolished in
2015-16 budget)
 DIRECT TAX
1 PERSONAL INCOME TAX
 DIRECT TAX
2 CORPORATION TAX
 DIRECT TAX
3 GIFT TAX

Receiver has
to pay the gift
tax
 DIRECT TAX
4 WEALTH TAX

It is 1% tax on the wealth, which does not

generate income but, was abolished in
2015-16
 INDIRECT TAX
These are the taxes levied on goods or services. It is imposed
uniformly on all the citizens, who ever purchase / use the service.

CENTRAL GOVT.
1. Excise Duty
2. Customs Duty
3. Service Tax
NOTE
Various taxes by the State
Governments are
1. Value Added Tax
2. Entry Tax
3. Octroi
4. Luxury Tax
 INDIRECT TAX
1 EXCISE DUTY

This is levied on goods manufactured in India

 INDIRECT TAX
2 CUSTOMS DUTY

This is levied on goods imported into the country

 INDIRECT TAX
3 SERVICE TAX

This is paid on services availed.

 GOODS & SERVICES TAX

SO FAR, WE HAVE SEEN …

CENTRAL GOVT. STATE GOVTS.

1. Excise Duty 1. VAT ONLY ONE TAX
2. Service Tax + 2. Entry Tax i.e., GOODS AND
3. Octroi SERVICES TAX
4. Luxury Tax

These are indirect taxes levied by both State

Governments & the Central Government. In
future, they will be replaced by GST