Dr. Bhawna Arora, Associate Professor, Law College Dehradun, Uttaranchal University, Dehradun- 248007, Uttarakhand, India.
Keerti Singh, B.B.A. LL.B.(Hons.), Law College Dehradun, Uttaranchal University, Dehradun- 248007, Uttarakhand, India.
ABSTRACT
The taxation system of each country lays down a foundation for its financial system, and the said taxation system determines whether the financial system of the country would be effective and steady or otherwise. Henceforth, it falls under the ambit of the State to extract a compulsory amount which would further be utilized for the welfare of the said State. The previously mentioned compulsory extraction by the State could be known as the ‘taxation’1.
When a State formulates a taxation system it is done with the sole purpose of addressing various public requirements and necessities, which becomes the legitimate tax collection aim. By this. A taxation mechanism of a country becomes an indispensable instrument which helps in the stimulation of economic growth, works towards the promotion of exports while regulating the imports, and additionally, nurtures the local commerce and trade, henceforth, generates various opportunities for employment, adding value to the economic progress of a State. Thus, it is numerously quoted that tax refers to a price we pay for a civilized society2. Henceforth, the paper outlines the tax mechanisms which are prevalent in the Asian Countries with regards to corporate taxation.
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