VAT was introduced into the Indian taxation system from 1 April 2005. VAT is a multi-stage indirect tax levied at each stage of the value addition chain, with a provision to allow input tax credit (ITC) on tax paid at an earlier stage, which can be appropriated against the VAT liability on subsequent sale.
VAT is intended to tax every stage of sale where some value is added to raw materials, but taxpayers will receive credit for tax already paid on procurement stages. Thus, VAT will be without the problem of double taxation as prevalent in the earlier Sales tax laws. If the transaction involves movement of goods from one state to another (inter-state), the tax is levied under Central Sales Tax Act (CSTA), 1956.
A N Khurana & Co will help you with all kinds of VAT/Sales Tax related matters including:
- Registration with VAT / Sales Tax Authorities
- Filing of Periodical Returns and calculation of tax liability
- Assisting with other VAT / Sales Tax compliances
- Procurement of Statutory Forms
- VAT Planning and Advisory Services
- Representation for Assessment, Appeals, References etc