what does VAT stand for ?
Answers
Answer:
Value Added Tax
Explanation:
VAT (Value Added Tax) is a form of indirect tax imposed only on goods sold within a particular state, which essentially means that the buyer and the seller needs to be in the same state. Only when tangible goods and products are sold, VAT can be imposed.
Answer:
VAT stands for Value Added Tax
Additional Information:
⇒Every State Government needs money for the development of the state as well as to meet its non - development expenses like payment of salaries to its employees, health, education etc.
⇒In order to collect revenue , Government levies tax on sales of goods within the state.
⇒This tax is called sales tax.
⇒A customer has to pay sales tax on the good brought by him or her.
VAT is a method of releasing tax on the sales of goods.
⇒VAT IS A FORM OF SALES TAX ONLY.
⇒The same sales tax is collected by State Government.
⇒VAT is a system of collecting sales tax which reduces the scope of under evaluation and tax evasion. It provides a broad base tax system.
Today ,after our beloved Prime Minister , Mr. Narendra Modi removed VAT and introduced us to a whole new concept G.S.T