{"id":77742,"date":"2020-09-22T07:16:51","date_gmt":"2020-09-22T07:16:51","guid":{"rendered":"http:\/\/staging.expatinfodesk.com\/?page_id=77742"},"modified":"2024-02-26T13:06:58","modified_gmt":"2024-02-26T13:06:58","slug":"tax","status":"publish","type":"page","link":"https:\/\/www.expatinfodesk.com\/destinations\/bangalore\/tax\/","title":{"rendered":"Expat Tax Guide – Bangalore"},"content":{"rendered":"

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Tax Guide for Expats<\/h2>\n

While living and working in India, you will find yourself paying taxes at various levels. If you are resident in India and earn an income in India, you will need to pay an annual income tax, for which there are several levels, depending on how much you earn in a year. For more details, see the “Income tax” section.<\/p>\n

Regardless of whether you earn an income in India or not, any purchases you make, or services you avail, will fall under one or the other of the following taxes:<\/p>\n

VAT: This has very recently been introduced, and replaces the earlier sales tax. Most products in India will have to bear VAT. There are two slabs for VAT – most essential goods and commodities come under a lower rate of 5% and luxury (or non-essential) goods are taxed at 12.5%.<\/p>\n

Service tax: This is a tax on a broad range of services, and applies to any service obtained by a customer that is not a product. Service tax is set at 10.3%<\/p>\n

Luxury Tax: This is a tax levied by the state government, on food and accommodation in hotels and establishments above a certain price level. Luxury tax is set at 12.5%[\/vc_column_text][\/vc_column][vc_column width=”1\/3″ el_class=”city-side-bar”][vc_row_inner el_class=”sidebar-section-one”][vc_column_inner][vc_custom_heading text=”Top Tips” font_container=”tag:h4|font_size:24|text_align:left|color:%23ffffff” google_fonts=”font_family:Open%20Sans%3A300%2C300italic%2Cregular%2Citalic%2C600%2C600italic%2C700%2C700italic%2C800%2C800italic|font_style:400%20regular%3A400%3Anormal”][vc_separator color=”#ffffff” type=”full_width” thickness=”1″ up=”” down=””][vc_column_text]<\/p>\n\n\n\n\n\n\n\n
01<\/td>\nAlways carry several passport-sized headshots with you. You will require these for nearly every account you open and every form that you complete.<\/td>\n<\/tr>\n
02<\/td>\nWhen filing applications and opening accounts (particularly with government offices) ensure you bring with you every imaginable supporting document.<\/td>\n<\/tr>\n
03<\/td>\nGovernment offices in particular can be very arbitrary and demanding on your patience, so be prepared for a full run-around and keep your patience!<\/td>\n<\/tr>\n
04<\/td>\nBuilding a social network in Bangalore is very important, both for the feel-good factor, as well the premise that India operates on connections.<\/td>\n<\/tr>\n
05<\/td>\nAs a foreigner, you may not be expected to play by the many cultural rules that exist for most Indians. Despite this you should always make an effort.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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