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"As a part of major indirect tax reforms in the country, sales tax structure prevalent at the State-level is being replaced by Value Added Tax (VAT) in many States w.e.f April 1, 2005. The essence of VAT is that it provides credit/set-off for tax paid on purchases against the tax payable on sales. The book contains various chapters on What is Value Addition? ? Addition Method and Subtraction Method ? Input Tax Credit Method ? Is Vat Really a Tax on Value Addition ? Vat and Retail Sales Tax ? More on Input Tax Credit ? Exemption And Zero Rating ? Vat Administration in India ? Is Input Tax Credit Available for Capital Goods? ? Input Tax Credit-Refusals and Reversals ? Assessment Computations ? Maintenance of Accounts, Filing of Returns and Final Assessments ? Vat And Small Dealers ? Why Vat? Text of White Paper on State-Level Value Added Tax - Annexures containing First Hand Information on VAT ? VAT-It is All About Self Assessment ? VAT-Books and Records of Convenience ? VAT-A Few Important Things you must Do/Know Before your Transition to VAT ? VAT-Introducing Composition Scheme for all Small Dealers ? VAT-All About The Tax Invoice ? VAT-Not A New Tax But Improved Version of Sales Tax Levied At Every Stage of Sale With A Provision For Set Off of Taxes Paid by A Dealer on his Purchases against Tax Payable on His Sales During A Tax Period ? Vat-Sale On MRP : Computing Vat Made Easier. The book also contains Text of ICAI Guidance Note on State-Level Value Added Tax, issued in March 2005 : With a view to provide guidance on various accounting issues that are likely to arise on implementation of State-level VAT, the Institute of Chartered Accountants of India has issued `Guidance Note on Accounting for State-level Value Added Tax`. The Guidance Note provides guidance in respect of accounting for various aspects of State-level VAT including : ` accounting for VAT credit available on purchase of inputs ` accounting for VAT credit available on purchase of capital goods ` accounting for VAT credit available on opening stock at the inception of the VAT scheme; and ` accounting for VATpayable on sales. The Guidance Note also contains an Appendix which provides various examples to illustrate application of the principles explained in the Guidance Note. The Guidance Note requires that the input tax paid on purchase of inputs/capital goods which is available as VAT credit should not be included in the cost of purchase. The Guidance Note also requires that the VAT credit which will be available in future on the goods lying in stock at the inception of the VAT scheme should be credited to the Opening Stock A/c at the inception of the scheme itself. The Guidance Note recognises that VAT payable on sales is an indirect tax which is ultimately borne by the final consumer. The dealers collects VAT from their customers on behalf of the VAT authorities. The Guidance Note, accordingly, recommends that VAT collected from the customers should not be recognised as an income of the enterprise, i.e., it should not be included in the sales. Similarly, the payment of VAT should not be treated as an expense in the financial statements of the enterprise."
ISBN-9788180382215
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