What are VAT Rates?
The term VAT means Value Added Tax. This system of taxation was introduced firstly by a French economist named Maurice Laure, and the joint director of the French tax authority in the year 1954. This is a form of indirect taxation charged on the added value of a product at every level of production. The VAT rates differ from place to place. Until 1st April 2005 there were no VAT charged on any of the products sold in India. Instead of that sales tax was levied on the commodities sold within the country. From April 2005 VAT was introduced in Indian Economy wherein it was charged @ of 12.5% and the minimum amount which was registered in lieu of this taxation was approximately Rs 500000/-. Basically if you see every trader actually pays the VAT at the point of selling their product but this is different form the sales tax as VAT is charged at every level of production whereas sales tax is imposed on final value of the deal. How is VAT calculated? If a trader purchases goods at Rs 100 the
