vat

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Description Businesses trading in Germany should ensure using the correct VAT rate to account for German VAT. The standard VAT rate is currently 19%, which applies to most taxable supplies. Regional public transport services, supplies of almost all kinds of food, books and newspapers are subject...

Description Value-added tax (VAT) is imposed in over 140 countries worldwide, making it the world’s most commonly used tax. Although VAT is currently not imposed in the United States, any U.S. multinational corporation should be aware of VAT as it can impact almost every transaction that takes...

Description In the previous chapter, we discussed the principles of indirect taxation. In this chapter, we focus on some of the practical issues in its implementation, and in particular in the design and operation of VAT. 7 Mmmm Implementation of VAT In the previous chapter, we discussed the...

Value Added Tax(VAT) is not an expense to business. You collect from customers and pay to tax office. It's indirect tax; consumer bears the burden. Income tax is an expense to business. It's direct tax. Business pays out of its profit.

hi frnds, i 'm sharing notes on Value added Tax prepared by me. This Note is prepared as per the curriculum of CA IPCC course. This note will help the IPCC/PCC students to learn the basic concepts of VAT with explanations of points given in institute study material. The file is in attachment...

Hi folks uploading project on VAT audit done in Bluestar India Ltd .....

While the States have thus taken several steps towards introduction of VAT, certain supporting decisions were critically needed at the national level for more effective implementation of VAT from April 1, 2005. It needs to be carefully noted that although introduction of VAT may, after a few...

Effects of the VAT System This design of the State-level VAT has been carefully worked out by the Empowered Committee after repeated interactions with the States and others concerned and striking a balance between the needed convergence and federal flexibility as well as ground-level reality...

VAT Rates and Classification of Commodities Under the VAT system covering about 550 goods, there will be only two basic VAT rates of 4% and 12.5%, plus a specific category of tax-exempted goods and a special VAT rate of 1% only for gold and silver ornaments, etc. Thus the multiplicity of...

Procedure of Self-Assessment of VAT Liability The basic simplification in VAT is that VAT liability will be self-assessed by the dealers themselves in terms of submission of returns upon setting off the tax credit. Return forms as well as other procedures will be simple in all States. There...

Design of State-Level VAT As already mentioned, the design of State-level VAT has been worked out by the Empowered Committee through several rounds of discussion and striking a federal balance between the common points of convergence regarding VAT and flexibility for the local characteristics...

Justification of VAT and Background In the existing sales tax structure, there are problems of double taxation of commodities and multiplicity of taxes, resulting in a cascading tax burden. For instance, in the existing structure, before a commodity is produced, inputs are first taxed, and...

What are the effects of change in classification under the VAT law? The effects of change in classification are as follows:  The classification of goods, by the states, for the rate of tax would be more or less the same. In other words, there could be homogeneous...

How does VAT affect cash flows? Under sales tax regime, it is possible to purchase goods at concessional rate or without payment of tax, by furnishing prescribed declarations as to the user of goods. Under VAT regime, it may not be possible to purchase goods at...

VAT Effects on Tax Cost. What are the determinants of tax cost generally? The tax cost is mainly dependent on: • Point of levy • Classification of goods • Applicable rate of tax (including additional levies, if any, like, surcharge, etc.) • The nature and...

Components For VAT. The relevant components are: • Sale price or purchase price. • Turnover of sale or purchase, including taxable turnover. • Output tax or tax on sales. • Purchase tax input tax or tax paid on...

EXEMPTIONS:- The schedule does specify certain goods attracting nil rates of tax or exempt goods. Other than those, there is no specific or general exemption, as was the position under the sales tax regime The government may have a power to notify exemptions and appears to be limited. To...

Sale And Purchase Under VAT. EVENT OR TRANSACTION, WHICH ATTRACTS TAX Value Added Tax is: • on sale or purchase of goods • by a dealer, in the course of business • for a consideration • payable on turnover of sales or purchase • at every...

SIMILARITIES BETWEEN VAT AND ST: Essentially, both are “tax” on sale or purchase of goods. The levy or the incidence of tax could more or less be the same. It is payable by a dealer (liable to tax). The administrative procedure for the levy and collection of tax including Registration...