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Sunday, 29 November 2015

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.
 
[Internet]

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