A recent IMF study concludes that the VAT can be a good way to raise resources and modernize the overall tax system—but this requires that the tax be well designed and implemented.
Procedures relating to filing of returns, payment of tax, furnishing declaration and assessment are simplified under the VAT system so as to minimize any interface between the taxpayer and the tax collector. This causes an unfair double-taxation.
VAT has a flexibility to generate large and buoyant revenues, as it levies tax on value additions. VAT introduces uniform tax rates across the state so that unfair advantage cannot be taken while levying the tax.
If VAT registered businesses receive more output tax than the taxes paid as input, they will need to pay the difference to the commissioner of Taxes State. According to white paper, there are categories of goods under the VAT system.
However, in VAT, a set off is given for input tax tax paid on purchases.
The emphasis on new reforms is to broaden the tax net and make it simple so that a layman can understand it. The Indian Economy is on race with other nations due to globalization and its transformation to a market economy. VAT has been introduced in India to ensure a fair and uniform system of taxation.
A still more fundamental and as yet little recognized set of issues concerns the relationships between the VAT and income taxes, both domestically and internationally.
It is the tax paid by the producers, manufacturers, retailers or any other dealer who add value to the goods and that is ultimately passed on to the consumer. As VAT is a multi-point tax with set off for tax paid on purchases, It prevents repeated taxation of the same product.
This results in overall tax burden being rationalized and a fall in prices of goods.
It benefits the common man Consumerbusinessman and the Government. VAT is a system of indirect taxation, which has been introduced in lieu of sales tax.
This is a tax charged on sales Input Credit: Few goods that are outside VAT as a matter of policy would include liquor, lottery tickets, petroleum products, as the prices of these items are not fully market-determined.
Input purchased within the month:Income Tax Rates/ Slabs for the financial year (A.Y. ) for Individual, HUF, woman, senior citizen and senior citizen of 80 Years and more-No. As per the Finance Act,income-tax rates Applicable for Assessment Year / Financial Year Applicable to Individual, HUF, is as follows- Rat Income Tax Rates FY / AY for Individual & HUF.
A quick look at income tax slabs in India for financial year and tax assessment year The slides show tax slabs for general tax payers (age below 60 years), female tax payers (age below 60 years), senior citizens (age between 60 to 80 years) and super senior citizens (age above 80 years).
Income tax slab The latest income tax slab to calculate your tax for Year based on budget budget. Tax exemption limit raised to Rs 2 lakhs and tax rates has changed for other slabs too. The following IT RATES WERE applicable for the Financial Year ending March 31, (Financial Year )-Assessment Year ): Latest Income Tax Slabs in India- (FY or AS ).
Find out the Income Tax slab tax rates for FY (AY ) and FY (AY ). Theses tax slab determines how much you will pay in taxes.Download