Income tax is tax paid by the assessee on the income 
recieved during a particular year.
Sales Tax is payable by the seller to the Govt. ie, 
received from the buyer as part of consideration for sale 
of goods.
VAT or Value Added Tax is indirect tax on goods introduced 
in lieu of sales tax to ensure transaparency and greater 
compliance. It is a multi-point tax.
VAT consists of INPUT TAX, OUTPUT TAX, INPUT CREDIT etc.

INCOME TAX

INCOME TAX, it is a Direct Tax collectd by the governemnt, 
as the name suggests, is a tax on the income of an 
individual. the persons liable to pay this tax are 
determined based of the provisions of the come Tax Act. In 
India, the income Tax Act classififes the income of 
individuals into 5 different sources.
1) Income form Salaries.
2) Income from business and profession.
3) Income from house property.
4) Capital Gains.
5) other income.

According to the taxation laws in India, every company has 
to pay a tax on income earned. Financial statements 
prepared by an organisation, in accordance with the Income 
Tax Act, may differe from the Statutory forms adopted by 
the organisation. In India, the sttutory reporting form for 
a company is defined by the companies Act, 1956.
TDS(TAX DEDUCTED AT SOURCE) is one of the modes of 
collecting Income Tax.

SALES TAX

Sales Tax is a Indidrect tax on goods, is a levy on 
purchases and sale of goods. it is levied under authority 
of both central legislatin (Central Sales Tax) and state 
governments' Legislations (Local Sales Tax). Central Sales 
Tax is governed by the Central Sales Tax Act, 1956 which 
covers inter-state transactions of sale of goods as well as 
transactions of import of goods or export of goods. it 
provides for the levy, collection and distribution of taxes 
on sales of goods in the course of inter-state trade of 
commerce.

A dealer shall be liable to pay tax under this Act on a 
sale of any goods effected by him in the course of inter-
state trade or commerce, notwithstanding that no tax would 
have been levidable (whether on the seller or purchaser) 
under the Sales Tax law of the ppropriate state if that 
sales had taken place inside that state.

The Local Sales TAx is government the respective Stte Sales 
Tax Acts under which tax is levied on intra - stte 
transactions of sales.


VAT (VALE ADDED TAX)

It is an indirect tax n goods, introduced in lieu of sales 
tax. its objective i to ensusre a fair and uniform system 
of taxation. the bsic premise of VAT is to tax the "true 
value" added to the goods, at each stage of the transaction 
chain. this ultimatelly reduces 
1) Tax paid to the government
2) Cost/Tax passed on to the consumer.

As against sales tax, which is a single-point tax, VAT is a 
multi-point tax. under a slaes tax regime, the vlaue of 
goods to be taxed at each stage is computed as basic cost + 
profit margin + sales tax paid at earlier stage. VAt does 
away with the cascading effect of tax, by allowing a set 
off for input tax, i.e. tax paid at the earlier stages on 
purchases.

great gayatri 

great answer.

plz help me how to maintain BRS.if u have knowledge about 
this 
plz send me mail with Example.

my mail addres is aijaz_ajju@rediffmail.com

i will wait for this.

or else any one who knows plz send me

I need the defination for CST, Entry Tax, Octori, Service 
Tax and TDS?