Value added tax (VAT)

For the past few years the industries are coming across the term VAT on and often in the newspaper reports and finance ministry is very keen to switch over to VAT system as prevailing in various countries abroad so as to simplify the taxation structure pertaining to levy of taxes on commodities/ services. VAT standards for value added tax and as the very name indicates the manufacturers or others have to pay duty only to the extent of the value added by them on the input received from others at the time of sale of final products.