what is orgin principle and designation principle of VAT?
pls explain it in simple words
Origin Principle : Value Added Tax (VAT) India
VAT is said to use the origin principle when the tax is levied on “domestically added value” to all goods including goods which are subsequently exported. It taxes all the values which originate in the country. It does not tax value that has been added abroad and is built in goods which are imported and sold domestically. This principle results in exempting the Imports and taxing the Exports.
CAclubindia
