Destination & Origin based tax in india

Destination & Origin based tax

The simple difference among the vacation spot based totally tax and starting place based tax lies inside the fact that origin based taxation seeks to levy and gather tax on the idea of place of manufacturing and destination based totally taxation seeks to levy and collect tax on the idea of location of consumption.this text is all about the distinction among vacation spot based totally tax and origin based totally tax wherein you may get extra information about the variations foundation on its structure, taxation of export, taxation of import and examples. in below article, you will clear of the difference in What is the difference between destination & origin based tax.?

Difference between destination & Origin based tax

Conditions Destination Based tax : Destination Based tax is levied where goods or services consumed not where produced.

Origin Based tax Structure : Origin based tax is levied where goods or services are produced not where consumed. Example If A in Telangana produces the goods and sells the goods to B in Karnataka, then, in this case, the tax should be levied and collected by the goods in the State of Karnataka and not in the State of Telangana. If A in Telangana produces the goods and sells the goods to B in Karnataka, then in such case the tax should be levied and collected in the State of Telangana and not in the State of Karnataka.

Taxation of Export : Exports could no longer be taxed and could be zero rated inside the territory as tax underneath this principle is levied inside the territory in which the goods or offerings are eventually fed on. Exports would constantly be taxed in the starting place primarily based taxation as tax underneath this precept is levied on goods or offerings produced inside the territory regardless of the reality that whether the equation is supposed for export or home intake.

Taxation of Import : Import Tax paid in that territory where goods will be consumed in the territory. Import tax paid in that territory where it has been produced

Indian model of IGST: vacation spot based Tax

A delivery of goods and/or offerings in the path of import into the territory of India shall be deemed to be a delivery of goods and/or offerings within the direction of inter-country trade or commerce is known as IGST. Interstate exchange or commerce will, therefore include supply of goods/offerings inside the route of – Inter-kingdom alternate or start Import into Indian territory (deemed to be inter-state)Export (deemed to be inter-state)for this reason,IGST shall apply to inter-kingdom transactions and import in addition to export transactions (deemed to be inter-state transactions) regarding the supply of products and/or services. In case you have any query feel free to contact us. you can also check our services for GST Registration and GST Filling.