Value Added Tax, VAT
VAT Means Value Added Tax. Value Added Tax is charged on the movement of sale of goods within the states of India.
This information is a brief idea about Value Added Tax, VAT. Who has to pay VAT, When is VAT paid? Exemption to pay Value Added Tax. Method of paying VAT, Value Added Tax.
If a seller invoices his sales to a buyer/consignee within the state, the VAT is applicable on such sales. For an easy example, if a sale of goods from Bangalore (Karnataka state) to Mysore (Karnataka state) Value Added Tax is imposed on such goods.
The revenue collected as Value Added Tax VAT is meant for state government.
Exemptions to collect VAT
The exempted goods are not charged Value Added Tax. Government fixes turn over for small business firm time to time and any business turn over falls under such category, VAT amount need not to be paid. Exports are totally exempted to pay Value Added Tax, if paid at any point of movement of goods can be claimed for reimbursement.
Method of paying VAT (set off)
VAT is paid on the basis of Output Minus Input. (Output-Input)
What is Output and Input? VAT collected from Customer is called Output and VAT paid is called input. So an amount of VAT is paid on the basis of deducting input from output is paid to government.
This information is a brief idea about Value Added Tax, VAT. Who has to pay VAT, When is VAT paid? Exemption to pay Value Added Tax. Method of paying VAT, Value Added Tax.
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