Thursday, November 19, 2015

A sample Rs 1000 meal

The VAT + Service Tax (Including Swachch Bharat Cess) would be Rs 195.5. (Govt earning 195.5)

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

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

So when i went out for a meal for Rs 1000, the Govt. earned 195.5+333.33+23= 551 Rupees.
In total I have to earn Rs 1551 to have Rs 1000 meal outside home

This is today's scenario on direct and indirect taxation.