Difference between sales tax and vat

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Narendra

Narendra (Querist)
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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)
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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.

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