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The Impact of VAT in India
VAT is most certainly a more transparent and accurate system of taxation. The existing sales tax structure allows for double taxation thereby cascading the tax burden. For example, before a commodity is produced, inputs are first taxed, the produced commodity is then taxed and finally at the time of sale, the entire commodity is taxed once again. By taxing the commodity multiple times, it has in effect increased the cost of the goods and therefore the price the end consumer will pay for it.
- Uttar Pradesh
- Tamil Nadu (to join from July 1)
- Uttaranchal
BJP ruled states
- Madhya Pradesh
- Rajasthan
- Jharkhand
- Gujarat
- Chattisgarh
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Keywords:
taxation, direct taxation, indirect taxation, tax planing, tax, value added tax, vat in india
