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| *Ostroff, Fair and Company>>>India Taxes |
Tell about VAT? |
Give the all details regarding VAT ie; give the each and every items tax under VAT system? Value added tax (VAT) is similar to a sales tax in that it is levied at the time of the sale of goods and services. In some countries, including Australia, Canada, New Zealand, and Singapore, this tax is known as "goods and services tax" or GST; and in Japan it is known as "consumption tax". VAT is an indirect tax, in that the tax is collected from someone other than the person who actually bears the cost of the tax (namely the seller rather than the consumer). VAT was invented by a French economist in 1954. Maurice Laur茅, joint director of the French tax authority, the Direction g茅n茅rale des imp么ts, as taxe sur la valeur ajout茅e (TVA in French) was first to introduce VAT with effect from 10 April 1954 for large businesses, and extended over time to all business sectors. In France, it is the most important source of state finance, accounting for approximately 45% of state revenues. Personal end-consumers of products, consumers and services cannot recover VAT on purchases, but businesses are able to recover VAT on the materials and services that they buy to make further supplies or services directly or indirectly sold to end-users. In this way, the total tax levied at each stage in the economic chain of supply is a constant fraction of the value added by a business to its products, and most of the cost of collecting the tax is borne by business, rather than by the state. VAT was invented because very high sales taxes and tariffs encourage cheating and smuggling. It has been criticized on the grounds that it is a regressive tax. Well alomost every thng is taxed under VAT which amounts to nearly 4% of ur bill. Everythng from good, drinks, medicine, gedjets, clothes etc. come under the VAT. VAT is nothing but "Value Added Tax". So anytng tht adds value to u will come under VAT. Gaurav. This should tell you everything you want to know. http://en.wikipedia.org/wiki/value_added... Value Added Tax,it depends on which country you live.tell where you live,Mother India? |
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