IndiaMART Taxation - India Finance & Investment Guide
Finance@IndiaMART.Com - Go to The Home Page of Finance





Export & Import
Market Watch
Taxation
Investment in India
India File
Establishing New Ventures
Organisations
General Information
Indiamart Home
Travel & Tourism
Health Care
Auto Junction
Apparel & Textile
Indian Handicraft
Bulletin News
On-line Shopping
Indian Exporters
Indian Importers
Foreign Exporters
Foreign Importers


Indian Travel Guide
Adventure India
Fairs & Festivals
Hotels in India
Administration & Procedures Corporate Tax Custom Duty Sales Tax
Excise Duty Income Tax Capital Gains Tax Tax Treaties
NRI Taxation Tax Rebates Useful Definitions VAT in India

Taxation - Value Added Tax (VAT)

Meaning of VAT | Necessity of VAT in India | Advantages of VAT | Disadvantages of VAT | Items Covered in Indian VAT | The Impact of VAT in India | States Welcoming VAT in India | FAQs for VAT in India | Quotes & Unquotes for VAT in India

Meaning of VAT

VAT-The Global Meaning | VAT-In India | VAT-In History | Central VAT | Modified VAT (Modvat)

VAT - The Global Meaning

Globally, VAT is regarded as a tax that is best levied by the Central government - a condition that is difficult to meet in a federal finance system such as ours. It is true that 123 countries have adopted VAT, but most of them have unitary systems of government. VAT is a centrally-administered tax with a revenue-sharing mechanism. It is hard to visualise VAT as a revenue-neutral measure, or one where the states will not lose out in relation to the present system, in a federal set-up.

If VAT is Centrally administered, the tax base is quite wide, comprising imports, production and different stages of sales. If the base is divided between the Centre and states, the chain is broken, making tax evasion easier and affecting the states' tax base. In countries where VAT is administered by a federal government, revenue collection on imports accounts for a larger portion of total VAT revenues. In an IMF study of 22 developing countries, it was discovered that in about two-third of them, more than half the VAT revenue was collected from imports. In Pakistan and Bangladesh, VAT collection from imports was 64 per cent of the total proceeds from the tax. As tax evasion on bulk imports is difficult, it also helps in checking tax evasion at subsequent stages of the tax chain.
















IndiaMART

Search B2B Marketplace
Business Marketplace
Wholesale Catalogs
Industry Portals
Travel to India Send Gifts to India