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Vat Concepts

Gurmet Siingh (Chartered Accountant) (413 Points)

06 February 2008

I Wanna know everything which i can face while auditing in Vat Concept.

Pls. tell me where can i find the concept of Vat.Any site or e-book?

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21 Replies

prakesh (Article) (123 Points)
Replied 06 February 2008

it depends on the states.So first mention it

Amit Sharma (article) (2677 Points)
Replied 06 February 2008

Pls give me details of the state u stay in, accordingly details can be given,.

Aditya M (Student) (166 Points)
Replied 06 February 2008

what about the manufacturers with multi-state manufacturing and distribution?

Kaustuv (Practicing CA) (1773 Points)
Replied 06 February 2008

Hi, you can refer to the white paper on state level VAT issued by Ministry of Finance.. there you will get to know the fundamental concepts and principles of VAT regime.. and as VAT is a state subject, you have to refer to respective state VAT Acts for more elaborate discussions.. you can download the white paper from this link:- https://www.wbcomtax.nic.in/pdf/vat05-d2.pdf

Gurmet Siingh (Chartered Accountant) (413 Points)
Replied 06 February 2008

For,Delhi

(Guest)

Madhya pradesh

(Guest)

Madhya pradesh

(Guest)

Madhya pradesh

CA Mohit Mohan (c.a. profession) (557 Points)
Replied 10 February 2008

for which state?

(Guest)

My question is with regard to manufacturing in, lets say Daman and Diu and then subsequent sale in Tamil Nadu.. Goods transferred (stock transfer) through MH and KA and subsequently sold by a clearing and forwarding agent in Chennai.. What all tax liabs will exist on this entire transaction? Also, which all states do not have excise? I heard that Gujarat is going to abolish excise? Is this true? Though not notified yet..

(Guest)

Dear Mr.Aditya Mudgal, The Excise and VAT are two different Laws. Excise is for manufacturing and VAT is for sales. Excise is managed by central Govt. whereas VAT is managed by state Govts. Whatever you manufacture in India, you have to pay Excise Duty only once that too only to Cent. Govt. Only Central Government has powers to make changes in relation to Excise. So Gujarat state cannot do anything in relation to Excise including its abolishion. Though VAT is managed is by State Govts. The Inter state sale is managed by a Central Law called Central Sales Tax Act. CST needs to paid in the state where the sale is being made. In sale from Daman to Chennai, there can be 'N' no. of states in between. But the transaction is a single transaction. So it will normally be taxed only at one place that is Daman. No other states can tax this transaction just because the goods crosses their frontiers. Hope you can understand.

Aditya M (Student) (166 Points)
Replied 13 February 2008

Thanks...

Aditya M (Student) (166 Points)
Replied 13 February 2008

One more thing...Can you offset your CST liability against the input tax credits available under VAT? Or is the state and central matter different here too?