Explain the features, advantages, disadvantages of VAT? Define the terms "Goods" U/S 2(16) APVAT ACT with examples? Registration by businessmen under APVAT ACT 2005, and procedure for Registration undre APVAT Act 2005?
Answers
Answer:
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GOODS:-
In economics, goods are items that satisfy human wants and provide utility, for example, to a consumer making a purchase of a satisfying product. ... A good may be a consumable item that is useful to people but scarce in relation to its demand, so that human effort is required to obtain it.
APVAT ACT:-
A value-added tax (VAT) is a consumption tax that is levied on a product repeatedly at every point of sale at which value has been added. That is, the tax is added when a raw materials producer sells a product to a factory, when the factory sells the finished product to a wholesaler, when the wholesaler sells it on to a retailer, and, finally, when the retailer sells it to the consumer who will use it.
EXAMPLE:-
An example of a 10% VAT in sequence through a chain of production might occur as follows:
A manufacturer of electronic components purchases raw materials made out of various metals from a dealer. The metals dealer is the seller at this point in the production chain. The dealer charges the manufacturer $1 plus a 10-cent VAT, and then sends the 10% VAT to the government.
APVAT Registration:-
VAT rates in Andhra Pradesh differ according to the product being traded, based on schedules of the Andhra Pradesh Value Added Tax Act, 2005 with different rates. The basic premise of the VAT Act is to guarantee that basic commodities do not incur any VAT, thus keeping the needs of the population in mind. Commodities like books, manual agricultural instruments, curds, maize, fruits and vegetables, meat and plantain leaves and so on are subject to exemption from VAT under the Schedule I of the Act. Nearly a 100 items are mentioned in this Schedule.