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Means the value-added tax (VAT) is a general consumption tax assessed on the value added to goods and services. This is a general tax that applies, in principle, to all commercial activities involving the production and distribution of goods and services provided. It is a consumption tax because it is ultimately borne by the final consumer. It is not a charge on companies. It is charged as a percentage of price, which means that the actual tax burden is visible at each stage in the production and distribution chain. It is collected fractionally, via a system where taxable persons can deduct VAT from the loss of their obligation to pay their tax on other purchases to the activities of persons is their business. This ensures that the system is neutral regardless of how many transactions are involved. In other words, it is a multi-phase, lavied value-added at each stage in the chain of production for a set with the provision of goods and services, paying off first in a series of stages. Its purpose is to avoid 'cascading', which can be snowballing effect on prices. It is believed that due to cross-check a multi-staged, perwoll tax evasion will be checked, which is more revenue to the government. VAT of more than 130 countries perwoll around the world for over three decades and India has started the last few between. India already is a system in which the collection of sales tax collected at one point (first / last) transaction involves the sale of goods. VAT, but are collected in stages (installments) one is in the second phase. VAT is such that the system, in which imported goods and consumption of a particular state, the first thing is first seller, perwoll and the seller pays the tax on the value addition is done - a total fine The burden is equal to the last point.
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