What is VAT & give me example how the VAT countes on different stages of operation?

Question

What is VAT & give me example how the VAT countes on different stages of operation?

Answer 1

Value Added Tax.

It works with two terms 1) Input credit receivable; on purchases a company made 2)Output credit payable; on sales.

The Company who is register for VAT will pay the VAT ie Output Credit (Vat)collected from sales less with input credit(VAt)paid on purchases.

Check for local Govt gazette for rates, dates for payment of vat.

Answer 2

Value added tax (VAT), is tax on exchanges. It is levied on the added value that results from each exchange. It differs from a sales tax because a sales tax is levied on the total value of the exchange. For this reason, a VAT is neutral with respect to the number of passages that there are between the producer and the final consumer. A VAT is an indirect tax, in that the tax is collected from someone who does not bear the entire cost of the tax. To avoid double taxation on final consumption, exports (which by definition, are consumed abroad) are usually not subject to VAT and VAT charged under such circumstances is usually refundable

Answer 3

cool says

VAT means tax on value added in the price of the commodity/services at each stage of production & distribution. in India,so far VAT is not collected on services but only on price of commodities. in India MODVAT was started in 1986. MODVAT covered central excise duties.in2000,MODVAT was renamed as CENVAT.

VAT is an indirect tax.it looks like sales tax on commodities.

Answer 4

For information on Value Added Tax (VAT), read

http://mytaxes.in/index.php?topic=50.0

Answer 5

VALUE ADDED TAX If you buy anything worth buying!

Answer 6

VAT is abbrevated as VALUE ADDED TAX!!! Any Income should include VAT on its invoice, once the comapny or firm is registered for it!!! It can be calculated on at different %'s