Cost of a sample Rs. 1000/- meal

 

The VAT + Service Tax (Including Swach Bharat Cess) would be 195.50 (Govt earns 195.5)

 

Now to take home that 1000 rupees, I had to earn 1333.33 rupees (25% approx Income Tax on salary). (Govt. earns 333.33)

 

I had to use my bike for the 20km trip to and from home. Fuel Expenses - 45 Rupees (Govt earns 23 rupees on that. Including latest excise hike of 1.50)

 

I had to pay Rs.17 on road taxes on my bike. Considering 200 rides a year for 5 years, I pay Rs. 17 a ride to the Govt. (Govt. earns 17)

 

So when i went out for a meal for Rs.1000/- the Govt. earned 195.5+333.33+23+17 = 568 Rupees.

 

This is your today's lesson on direct and indirect taxation.

 

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