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| == Introduction == | | == Introduction == |
− | Tax was also known as shulka (duty?), that is the king's share received from the buyer and the seller. The sources of tax were market streets, boundary areas of market, etc. (Shukraniti 4.2.105 ?)<ref>Rohan Kulkarni (2010), [http://www.jstor.org/stable/42931268 Tax System According to ’KAUṬILĪYA ARTHAŚA͞STRA, MANUSMṚTI AND ŚUKRANĪTI, and its relevance], Bulletin of the Deccan College Research Institute, Vol.70/71, P.439–443.</ref> | + | Tax was also known as shulka (duty?), that is the king's share received from the buyer and the seller. The sources of tax were market streets, boundary areas of market, etc. (Shukraniti 4.2.105 ?). |
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| + | == The terms of Taxation == |
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| + | * Tax on Profit and not on Capital |
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| + | Tax should be charged after determining the profits of the businessman (Shukraniti 4.2.108 ?). In any case tax should not be charged on capital (Shukraniti 4.2.107 ?). |
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| + | The king should realize from peasants (Shukraniti 4.2.116 ?), etc. after noticing the amount of profits and decide whether to take 1/3, 1/5, 1/7, 1/10 amount as tax. Before charging tax, expenses incurred on a product should be determined. |
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| + | The king should not realize duties from the seller, when he receives less than or just equal to the cost. The king should realize from the minerals after the expenses have been considered (i.e after payment of extraction, production, etc. expenses)(Shukraniti 4.2.115 ?). |
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| + | In case of newly cultivated land, digging of canals, wells, etc. tax should not be demanded from people until they receive twice the expenditure (Shukraniti 4.2.120 ?) |
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| + | The traders should be made to pay the duties after due investigation of the details of buying and selling, the journey involved (transportation cost) and the measure of safety (preservation cost).<ref name=":0">Rohan Kulkarni (2010), [http://www.jstor.org/stable/42931268 Tax System According to ’KAUṬILĪYA ARTHAŚA͞STRA, MANUSMṚTI AND ŚUKRANĪTI, and its relevance], Bulletin of the Deccan College Research Institute, Vol.70/71, P.439–443.</ref> |
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| + | क्रयविक्रयं अध्वानं भक्तं च सपरिव्ययम् । योगक्षेमं च संप्रेक्ष्य वणिजो दापयेत्करान् । । ७.१२७ । ।<ref>Manusmrti, [https://sa.wikisource.org/wiki/%E0%A4%AE%E0%A4%A8%E0%A5%81%E0%A4%B8%E0%A5%8D%E0%A4%AE%E0%A5%83%E0%A4%A4%E0%A4%BF%E0%A4%83/%E0%A4%B8%E0%A4%AA%E0%A5%8D%E0%A4%A4%E0%A4%AE%E0%A5%8B%E0%A4%A7%E0%A5%8D%E0%A4%AF%E0%A4%BE%E0%A4%AF%E0%A4%83 Adhyaya 7]</ref> |
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| + | The tax charged by the king should not be more than once. Tax should not be collected by fraud. |
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| + | (Shukraniti - 4.2.106 ?, Kautilîya Arthashastra - adhyaya 92 ?). |
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| + | Applying the principle to current situation, it can be said that, tax imposed once on a commodity or the income of a person should not be imposed again on the same. |
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| + | * Welfare of the tax payer |
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| + | Due importance to the welfare of taxpayer should be given. The amount of tax should not be such that it will destroy the taxpayer completely. Tax should be realized in a fashion of a gardener and not as a coal merchant.(Shukraniti - 4.3.110 ?)<ref name=":0" /> |
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| == References == | | == References == |