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The Shukraniti states that tax should not be charged on capital. It deters the ruler from taxing sellers who get value less than or equal to the value of the product. It emphasizes that tax should be charged after determining the profits of the businessman.<ref name=":0" /> <blockquote>शुल्कं मूल्याविरोधकम् । न हीनसममूल्याद्धि शुल्कं विक्रेतृतो हरेत् ।।१०७।। लाभं दृष्ट्वा हरेच्छुल्कं क्रेतृतश्च सदा नृपः ।...।।१०८।।<ref name=":5" />

The Shukraniti states that tax should not be charged on capital. It deters the ruler from taxing sellers who get value less than or equal to the value of the product. It emphasizes that tax should be charged after determining the profits of the businessman.<ref name=":0" /> <blockquote>शुल्कं मूल्याविरोधकम् । न हीनसममूल्याद्धि शुल्कं विक्रेतृतो हरेत् ।।१०७।। लाभं दृष्ट्वा हरेच्छुल्कं क्रेतृतश्च सदा नृपः ।...।।१०८।।<ref name=":5" />

śulkaṁ mūlyāvirodhakam । na hīnasamamūlyāddhi śulkaṁ vikretr̥to haret ।।107।। lābhaṁ dr̥ṣṭvā harecchulkaṁ kretr̥taśca sadā nr̥paḥ ।...।।108।।</blockquote>With regards to farmers, the Shukraniti advises the ruler to first measure the agricultural land and classify its producing capacity as high, moderate or low before fixing the tax amount. It specifies that a ruler should tax the farmer in a way that he is not at loss.<blockquote>बहुमध्याल्पफलितां भुवं मानमितां सदा ।।१०८।। ज्ञात्वा पूर्वं भागमिच्छुः पश्चाद्भागं विकल्पयेत् । हरेच्च कर्षकाद्भागं यथा नष्टो भवेन्न सः ।।१०९।।<ref name=":5" />

śulkaṁ mūlyāvirodhakam । na hīnasamamūlyāddhi śulkaṁ vikretr̥to haret ।।107।। lābhaṁ dr̥ṣṭvā harecchulkaṁ kretr̥taśca sadā nr̥paḥ ।...।।108।।</blockquote>With regards to farmers, the Shukraniti advises the ruler to first measure the agricultural land and classify its producing capacity as high, moderate or low before fixing the tax amount. It specifies that a ruler should tax the farmer in a way that he is not at loss.<ref name=":6">B.D.Basu (1914), The Sacred Books of the Hindus ([https://archive.org/details/Sukra_Niti/page/n152/mode/1up?view=theater Vol.8 The Sukraniti]), Allahabad: The Panini Office.</ref><blockquote>बहुमध्याल्पफलितां भुवं मानमितां सदा ।।१०८।। ज्ञात्वा पूर्वं भागमिच्छुः पश्चाद्भागं विकल्पयेत् । हरेच्च कर्षकाद्भागं यथा नष्टो भवेन्न सः ।।१०९।।<ref name=":5" />

bahumadhyālpaphalitāṁ bhuvaṁ mānamitāṁ sadā ।।108।। jñātvā pūrvaṁ bhāgamicchuḥ paścādbhāgaṁ vikalpayet । harecca karṣakādbhāgaṁ yathā naṣṭo bhavenna saḥ ।।109।।</blockquote>Interestingly, Shukraniti mentions that the ruler should charge  

bahumadhyālpaphalitāṁ bhuvaṁ mānamitāṁ sadā ।।108।। jñātvā pūrvaṁ bhāgamicchuḥ paścādbhāgaṁ vikalpayet । harecca karṣakādbhāgaṁ yathā naṣṭo bhavenna saḥ ।।109।।</blockquote>Interestingly, Shukraniti mentions that the ruler should charge  

* 1/4th amount as tax if the field is dependent on rains for its water

* 1/4th amount as tax if the field is dependent on rains for its water

* Half its amount as tax if the field depends on a river for its water

* Half its amount as tax if the field depends on a river for its water

* 1/6th amount if its a barren or stony land

* 1/6th amount if its a barren or stony land<ref name=":6" />

<blockquote>तडागवापिकाकूपमातृकाद्देवमातृकात् । देशान्नदीमातृकात्तु राजाऽनुक्रमतः सदा ।।११२।। तृतीयांशं चतुर्थांशमर्धांशं तु हरेत्फलम् । षष्ठांशमूषरात्तद्वत्पाषाणादिसमाकुलात्  ।।११३।।<ref name=":5" />

<blockquote>तडागवापिकाकूपमातृकाद्देवमातृकात् । देशान्नदीमातृकात्तु राजाऽनुक्रमतः सदा ।।११२।। तृतीयांशं चतुर्थांशमर्धांशं तु हरेत्फलम् । षष्ठांशमूषरात्तद्वत्पाषाणादिसमाकुलात्  ।।११३।।<ref name=":5" />

taḍāgavāpikākūpamātr̥kāddevamātr̥kāt । deśānnadīmātr̥kāttu rājā'nukramataḥ sadā ।।112।। tr̥tīyāṁśaṁ caturthāṁśamardhāṁśaṁ tu haretphalam । ṣaṣṭhāṁśamūṣarāttadvatpāṣāṇādisamākulāt ।।113।।</blockquote>The shukraniti also highlights that before charging tax, expenses incurred on a product should be determined.

taḍāgavāpikākūpamātr̥kāddevamātr̥kāt । deśānnadīmātr̥kāttu rājā'nukramataḥ sadā ।।112।। tr̥tīyāṁśaṁ caturthāṁśamardhāṁśaṁ tu haretphalam । ṣaṣṭhāṁśamūṣarāttadvatpāṣāṇādisamākulāt ।।113।।</blockquote>The shukraniti also highlights that before charging tax, expenses incurred on a product should be determined.

For example, in case of minerals, it states that the ruler  should tax minerals after the expenses like payment for extraction, production, etc. have been considered  

For example, in case of minerals, it states that the ruler  should tax minerals in the following rates but after the expenses like payment for extraction, production, etc. have been considered.<ref name=":0" /> 

(i.e after . expenses)(Shukraniti 4.2.115 ?).

* 1/2 the share of gold, gems, glass and lead

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 ?)

 

svarṇādardhaṁ ca rajatāttr̥tīyāṁśaṁ cā tāmrataḥ । caturthāṁśaṁ tu ṣaṣṭhāṁśaṁ lohādvaṅgācca sīsakāt ।।115।। ratnārdhaṁ caiva kṣārārdhaṁ khanijādvyayaśeṣataḥ ।</blockquote>Infact in case of people establishing new industries, cultivating new lands, digging canals, wells, etc., the Shukraniti prohibits the ruler from demanding tax until they achieve profit that is twice their expenditure.<ref name=":0" /> (Shukraniti 4.2.120 ?)

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><blockquote>क्रयविक्रयं अध्वानं भक्तं च सपरिव्ययम् । योगक्षेमं च संप्रेक्ष्य वणिजो दापयेत्करान् । । ७.१२७ । ।<ref name=":1">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></blockquote>The tax charged by the king should not be more than once. Tax should not be collected by fraud.  

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><blockquote>क्रयविक्रयं अध्वानं भक्तं च सपरिव्ययम् । योगक्षेमं च संप्रेक्ष्य वणिजो दापयेत्करान् । । ७.१२७ । ।<ref name=":1">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></blockquote>The tax charged by the king should not be more than once. Tax should not be collected by fraud.