VAT

VAT: value added tax.it is really easy to understand this concept.we apply vat on each stage of production process or you can say on each different layer of activity which adds value to the product.e.g if you take an example of a mill, when wheat is suplied to mill by wholeseller  tax is charged,then tax will be charged on flour bags when sold to distributor/wholeseller then comes retailer or customers.customers are also sold bags after charging vat by distibutor.

in short when you buy raw material you are suppose to pay vat then finished goods are also sold after being charged vat.

nicceeeeeeee  explaination above

THANX A LOT PREETI MAM.