What is vat
This query is : Resolved
19 November 2011
Dear sir,
I would like to know importance of vat and haw it works and process
I would like to know importance of vat and haw it works and process
19 November 2011
VAT is value added tax, which is applicable in local sales tax. (However in service tax/excise etc CENVAT is also used)
earlier there was only one point tax on sale, hence many businessmen were able to evade tax liability.
Now VAT is multi point tax where every seller has to pay tax, and in return he will get tax credit for tax paid by him on purchase. So this scheme will help to curb tax evasion.
Simply speaking, its tax on your value addition only.
Regards
earlier there was only one point tax on sale, hence many businessmen were able to evade tax liability.
Now VAT is multi point tax where every seller has to pay tax, and in return he will get tax credit for tax paid by him on purchase. So this scheme will help to curb tax evasion.
Simply speaking, its tax on your value addition only.
Regards
19 November 2011
agreed with expert .
VAT is a multi-point tax on value addition which is collected at different stages of sale with a provision for set-off for tax paid at the previous stage/tax paid on inputs.
also read the link:
https://www.caclubindia.com/share_files/all-about-vat--43084.asp
VAT is a multi-point tax on value addition which is collected at different stages of sale with a provision for set-off for tax paid at the previous stage/tax paid on inputs.
also read the link:
https://www.caclubindia.com/share_files/all-about-vat--43084.asp
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