What will the earning of the national exchequer post VAT?
I cannot actually quantify it in monetary terms, but it will definitely increase as it has in many foreign countries which have implemented VAT. What benefit will it bring to customer and traders? Customers will be at the receiving end as the burden is transferred to the them, as VAT is destination based. While the prices of some articles will go up, the prices of some will come down as well. As for traders, input tax credit will be a great advantage. What will be the impact of VAT on various sectors? The big corporates burdened by corporate tax as high as 35 per cent and high sales tax will benefit hugely. The 4 per cent tax will reduce the lock-in of the working capital of the company, which will ensure a smooth business. The input tax credit, which forms the core of VAT, enables dealers to claim credit of the tax paid or payable on the purchase of any goods made from a dealer registered in the state. The input tax credit can also be carried forward to the next year. The manufacturin
