Taxation

yes                                                                              

YES, government companies and other institutions run by the various union and state government need to pay various taxes such as IT, ST, VAT, etc

agreed with above two replies.

yes govt.cos.are also required to pay taxes.

thank you very much. 

bt can u elbrate....i m confused that what is the reason for so because as it the government itself funds such bodies so whats the point of collecting taxes from them.

the main reason could be to find the correct profitability of such companies after considering all the taxes

if government manufacturing companies did not con sider indirect taxes levied than how can they know the correct cost of product and how can they find the correct  sale value to be charged?

thanks a lot... :-)

@ Nishan...

Govtt companies are also required to pay taxes because

both (these companies and tax department) are different functions and Govtt. have to apply the money collected through taxes on yearly basis as allocated in union budget.....

(its just like a DTC bus when it jumped a red light pays penalty as challan then the said challan money is tfd in the pocket of another govtt department..)

Yes, Govt. companies and other department run by various government have to pay various taxes to the governement.

Yes Govt. Companies are also required to pay tax.

Govt. cos. are set up for various reasons:

One of them is to give competition to private players and avoid monopoly or cartels. Eg. If private airlines are charging exorbitant prices (during peak season), then Air India can compete with the private airlines by charging low price and maintaining a very reasonable margin; this might discourage the private airlines from charging high prices and maintain a healthy competition by bringing the prices to the normal levels thereby benefiting the consumers.

But since a competition should be fair play, the rules should be the same, irrespective of the company being govt. or pvt. Air India should not be able to charge lower than than the pvt. airlines only because they are getting tax reliefs!

It should be a very healthy competition and it is correct that the rules (taxes) apply equally to govt. as well as pvt. cos.