PRESENTATION

ON
FINANCIAL MANAGEMENT

BY:
SHERYL M. POLICARPIO
Taxation
Taxation refers to the act of a taxing
authority actually levying tax.
Taxation as a term applies to all types of
taxes from income to gift to a estate taxes
It is usually refer to as an act any revenue
collected is usually called Taxation.
History of Taxation
It is a matter of general belief that taxation
are of recent origin of but in ancient time
also taxes were levied in some form on sale
and purchase of merchandise or livestock .
It was all over the world . In India Kautilya’s
Arthasthra, which deals with the system of
Taxation in a real elaborate and planned
manner.
Tax
It was only for the good of his
subjects that he collected taxes
from them , just as Sun draws
moisture from the earth to give it
back a thousands fold

Kalidas in Raghuansh eulogizing King Dalip

Modern Definition
Tax is imposition of financial change
or other levying upon a taxpayer by
government or other functional
equivalent of the state.
Types of Taxes
1. Indirect Taxes
2. Direct Taxes
Direct Taxes
The taxes whose burden fails directly
on taxpayer are direct tax.
Examples
a.Income Tax
b. Wealth Tax
c.Property Tax
Indirect Tax
Indirect taxes are taxes in which the burden
of paying tax is shifted through change in a
price.
Examples
a.Custom Duty
b.Excise Duty
c. Sales Tax
d. Service Tax
 Income Tax

Corporate Tax
Personal Tax

It is levied on the income It is levied on income

of individual , undivided of registered
family and other Companies and
association of people. Corporations
Personal Tax
Income from all the sources are considered.
Certain rebates , deductions, expenditures,
insurances are not consider for levy tax.
It is progressive i.e. If income increases
tax rate also increases.

It is levied on the basis of slabs.

Corporate tax
Rationale for corporate Tax is that a Joint Stock
Company has a separate Entity so taxed separately.
A Corporation Pays taxes on behalf of income of
Shareholders on dividends paid to them and
each stakeholders get a Credit till don’t 1960-
1961. Now share holders don’t get credit
because Entity treat as separate Entity.
Corporations pays on flat tax rates and it is
different for other country or foreign
companies.
 Custom Duty and Octroi
Custom Duty is levied on import and Export .
From revenue’s point of view , importance of
Export duty is limited only.
Since 1991 Custom Duty structure was pruned
and now maximum rate of Custom Duty is 10%.
Octroi is a tax on goods entering in to
Municipality or any other jurisdiction for use ,
consumption or sale.
Excise Duty
Excise Duty is a tax charged on
goods produced within the country
. This is opposite to Custom Duty. It
is another name is CENVAT
(Central Value Added Tax)
Sales Tax
This is the tax imposed on the
sales of movable goods. Sales
tax is levied by Union
Government and intra sale by
state government.
Service Tax
The tax on paid services you take in
service tax. Over past few years it is
expanded to cover new services . Few of
the major service which comes under
vicinity of service tax are telephone ,tour
operator , architect ,advertising ,health
center, banking and financial services.
Thank you !!
 Value added Tax
The part of Sales Tax imposed by
state government is called value
added Tax.
It covers more than 220 items VAT
rates vary based on nature of
item and state.