A Comparative Study of Tax Structure of India

© Swaranjali Publication, 2018 243
A Comparative Study of Tax Structure of India
With Respect To Other Countries
Dr. BP Singh
Assosiat Prof., Department of Commerce, LBS College Gonda
Abstract
In this paper I tried to study the Indian tax structure in comparison with developed and
developing countries. The comparison is done by selecting a sample of five countries and
comparing the tax structure with India in terms of parameters such as gdp percentage, tax rate,
and time to tax compliance, no tax payment, ease of tax payment, and ease of use and so on. In
most of these parameters it has been established that the Indian tax structure is lagging behind
other selected countries.
Introduction
Tax is a financial levy or other levy levied by a state or a functionally equivalent person on a
taxpayer (a person or a company) to finance various government expenditures. (Wikipedia).
Taxes the structure of each country consists of a series of rules and laws set by a specific country
for tax collection by the public. The primary goal of tax collection is to increase government
revenue for development and welfare programs in the country. The secondary objective is to
raise income tax, improve the economic conditions of the general public, encourage the
production and distribution of basic demand products, suppress production and harmful products,
impede import trade and maintain economic equality. National industrial protection (Bhim
Chimoriya). The growth and development of the country is highly dependent on the tax structure
it uses. High tax rates and complex detergents inhibit growth. Complex tax systems also lead to
tax avoidance and thus to a parallel economy. Complex tax systems are also responsible for the
ease of doing business. Countries with simplified tax systems have led to the growth and
development of specific countries and to the facilitation of business activities.
Here is a summary of the tax structure for the selected country.
India: - India has a three-tier tax structure that is taxed as central government, state government
and municipal companies. In India, the Constitution gives you the right to levy taxes. There is a
clear distinction in the Constitution on taxes levied by central and provincial governments. Thus,
in accordance with the Constitution, all taxes in India are supported by their respective
corresponding laws adopted by the Congress or the State Legislative Council. In India, taxes are
classified as direct taxes and indirect taxes.
United States: - The United States has self-government and local authorities. It is a federal
republic. US taxes are levied by both the state and the local authorities. Taxes include taxes on
income, property, sales, capital gains, dividends, assets, gifts and income. The cleaning system in