What is VAT (Value-Added Tax) ?
- VAT stands for Value-Added Tax.
- A tax Imposed on value addition right from the stage of production upto the stage of final consumer.
- Thus, VAT extends to both production and distribution.
- It will replace CENVAT.
Advantages of VAT:
- No cascading effect
- 2. No tax evasion
- 3. Tax base will expand
- VAT ihas been implemented from April 1, 2005 throughout the country.