Planning Commission
Report
Presentation On VAT
FISME 's views

A VAT of woes
Is VAT package workable?
VAT a mess!!
VAT : The avoidable
mistakes
Where is the reform?
Moving up the supply
chain
A VAT of worries
April is the cruelest of
months
More Articles

India's tryst with VAT commenced from 1st April 2005 with 21 states of 29 agreeing to go ahead with Value Added Tax in place of sales tax. The tax levied on the value manufacturers and retailers add to goods at each sale point in the chain, is to replace a web of sales taxes across the states that has led to duplicate taxation.

It will cover 550 goods have two basic rates 4 percent and 12.5 percent and a special rate of 1.0 percent for gold and silver ornaments. It is meant to create a uniform system, curb rampant tax evasion and increase revenue for the state governments.

The states that have for the time being decided to opt out of Vat regime include Urrat Pradesh, Tamilnadu, Rajasthan, Gujarat, Madhya Pradesh, Jharkhand, Chhattisgarh and Goa.

However, the preparedness of the states of the legal and administrative machinery to implement VAT has been far-from-impeccable. Serious questions are being raised by traders, industry and the experts on how the fundamental principles of VAT have been undermined and ad-hocism displayed by states.

The chaos and confusion is likely to continue for some more time.

Panel to meet on April 15-16