Taxation firm services in Delhi
What is Taxation?
Taxation is a term for when a taxing authority, usually a government, levies or imposes a financial obligation on its citizens or residents. Paying taxes to governments and officials has been a mainstay of civilization since ancient times.
The term
“taxation” applies to all types of involuntary levies, from income to capital
gains to estate taxes. Though taxation can be a noun or verb, it is usually
referred to as an act; the resulting revenue is usually called “taxes”.
Different types of taxation As mentioned above, taxation applies to all
different types of levies. These can include:
1.
Income tax – Governments impose income taxes on financial income generated
by all entities within their jurisdiction, including individuals and businesses.
2. Corporate tax – This type of tax is imposed on the profit of a
business.
3. Capital gains – A tax on capital gains is imposed on any
capital gains or profits made by people or businesses from the sale of certain
assets including stocks, bonds, or real estate.
4. Property tax – A property tax is asses by a local government
and paid for by the owner of the property. This tax is calculated based on
property and land values.
5. Inheritance – A type of tax levied on individuals who
inherit the estate of a deceased person.
6. Sales tax – A consumption tax imposed by a government on
the sale of goods and services. This can take the form of a value added tax
(VAT), a goods and services tax (GST), a state or provincial sales tax, or an
excise tax.
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What is Project Finance?
Project finance is a means of funding projects that are typically infrastructure heavy, capital-intensive or related to public utilities. During its lifetime, these projects are treated as distinct entities from its parent.
A project finance venture undertaken is completely an off-balance sheet item for the parent. Therefore, all financing this entity avails, must be repaid exclusively out of its own cash flow and subject to its own assets. The assets of the parent cannot encroach for payback of its subordinate’s liabilities even if the venture fails. Popular sectors where project finance finds its applications include real estate, mining, telecommunication and power to name a few.
Advantages
of Project Finance
Project finance enables the sponsors to raise debt over and
above the capacity of the parent. This borrowing can be viewed in an individual
capacity and is not impacted by the credit reputation of its sponsors.
Therefore, more beneficial and flexible terms of credit can be negotiated depending
solely on the merit and potential under review. Credeb Advisory has always been
a good firm in the field of taxation and project financing and always paid good
results to their audience.
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