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Cascading effect of vat..
Well, cascading effect means the imposition of tax on tax element included in cost...
Doesn't vat paid on a product include the tax element on the margin of the seller?
Isn't the same profit taxed under the head Income From Business/Profession??
So does the govt. collects tax from the consumer and the producer for an expense as well as for an income.... both being the same???
Replies (3)
please these are the two levies which are alltogther different and charge of tax on sale and income are alltogether different. Please refer to the article 246 of the Constitution of India and Schedule 7 entry 82 list I and Entry 54 of list II.
Oh okay.
Happy to learn something new.. :)
Thanks :)
Oh yes.
Vat is collected by the SG and the income tax is levied by the CG..
I agree that they are completely different.. sale and income...
but i am not happy with the fact that the govt.(s) levy taxes on the same element (profit) twice.... :(
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