Presentation

on
VAT

Presented by :-Sravankumar
Roll no :- 44
BFM
What is
VAT???
• Value Added Tax is a
multi point sales tax with
set off for tax paid on
purchases.

• It is basically a tax on the

value addition on the
product.
 Day to Day example of
VAT

V.A.T @
12.5% Rs
(Rs.1750) 15750

Nokia 5800

Rs 14000
Features of VAT
 Tax levied and collected at every point of
sale.
 Tax levied and collected at every point of

sale and the tax already paid by the dealer

at the time of purchase of goods will be
deducted from the amount of tax paid at
the next sale.
 Dealers reselling tax-paid goods will have

to collect VAT and file returns and pay VAT

at every stage of sale (value addition).
• TAX is the money that
people have to pay the
government which is
used to provide public
services

• And also the money

collected has become an
instrument of fiscal policy
to Stimulate economic
growth and to maintain
economic stability in the
country
Who should pay Vat?
 An individual, partnership, corporation, HUF
etc, who sells goods in the course of business
and who is registered or is required to
register for VAT should pay VAT.
When is VAT chargeable?

VAT is chargeable if the sales of goods-

 are made by a VAT dealer in the state.

 are made in the course of or in furtherance

of a business; and
 are not specifically exempt or Zero-rated.
THANK

YOU