Income tax is a form of .............. tax.
(A) Direct tax
(B) Indirect tax
(C) Value Added Tax
(D) None of the above
Answers
The answer is direct tax.
- Option (a). DIRECT TAX.
GST calculation can be explained by simple illustration : If a goods or services is sold at Rs. 1,000 and the GST rate applicable is 18%, then the net price calculated will be = 1,000+ (1,000X(18/100)) = 1,000+180 = Rs. 1,180
What are the types of GST?
Currently, the types of GST in India are CGST, SGST and IGST. This simple division helps distinguish between inter- and intra-state supplies and mitigates indirect taxes. To learn more, read about these 3 different types of GST.
Types of GST in India- CGST, SGST & IGST
How do I calculate GST?
The formula for GST calculation:
Add GST: GST Amount = (Original Cost x GST%)/100. Net Price = Original Cost + GST Amount.
Remove GST: GST Amount = Original Cost – [Original Cost x {100/(100+GST%)}] Net Price = Original Cost – GST Amount.