Difference between sales tax and vat

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

Narendra

Narendra (Querist)
Follow

15 November 2014 Sir,

Pls tell me the difference between sales tax and vat. Pls clarify with some examples.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

15 November 2014 Earlier it was sales tax presently it is vat. For vat you can claim input tax credit.
Manufacturer will be entitled to credit of tax paid on inputs used by him in manufacture. A trader (dealer) will be entitled to get credit of tax on goods which he has purchased for re-sale.
Such credit is not available in sales tax.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now