Describe Value Added Tax

[adorée]

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I am looking to gain few information on the term VAT i.e. Value Added Tax. I have heard about this word every now and then, but i do not have clear idea about this term. So can anyone provide me some basic idea about this term, so that i can clear my query? Any help regarding this topic will be appreciated. Please try to post your reply as early as you can. Thanks.

[Chandranath]

Value Added Tax is the term which is associated with the value added to goods and services. It is a general tax that applies, in standard, to all money-making actions concerning the production and delivery of goods and the provision of services. It is a also known as “consumption tax” because it is generated eventually by the final consumer. This is what i want to tell you about the VAT.

[Sonic]

VAT is a multi-stage tax, and it is only being put on cost added at each point in the chain of manufacturing of goods and services with the stipulation of a set-off for paying the tax at the earlier chain. The purpose is to stay away from 'cascading', which can have a growing outcome on prices. More than 130 countries globally have launched VAT over the past three decades and India is amongst the last few to introduce it.
There are three types of VAT rates on goods and services

1. The standard rate, currently 15%
2. A special five percent rate applying to domestic fuel
3. The zero rated.

I think that the information which i have provided to you will clear you dought. Hope it helps you.

[Antonio Muñiz]

I require some details about the history of the Value Added Tax in India. This because i have got an assignment on this topic. I have to submit this assignment after two days. So can you provide me some information on this topic so that i can complete my assignment as early as possible? Please do help me out. I have also referred the above post and i founded it as interesting. Thanks.