POWER POINT PRESENTATIO

N ON TAX

GROUP MEMBERS ABHISHEK RAJ -66

AKANCHHA- 68 RAJ RAYMOND-92 SHYMAL MAJUMDAR-102 RAVI KUMAR-108

TOPICWhat is VAT ?What are the advantages and disadvantage of VAT also discuss the method of computation of VAT?

CONTENTS• INTRODUCTION• ADVANTAGES• DISADVANTAGES• FEATURES• METHOD OF COMPUTATION OF VAT• DIFFERENCE BETWEEN SALES TAX AND VAT

INTRODUCTION OF VAT

Value added tax (VAT) is an indirect tax , which is imposed on goods and services at each stage of production, starting from raw materials to final product.

ADVANTAGES OF VAT Self assessment under VAT Fall in price Simple calculations Transparency Fairness in the taxation system Less declaration forms

FEATURES OF VAT Levied on value addition Multi point taxing Tax invoice Supersedes sales tax Goods under VAT Registration

DISADVANTAGES OF VATHeavy compliance costBogus invoicesNO ITC for inter-state purchasesDisadvantageous for lower income group

METHOD OF COMPUTATION OF VAT

•Addition method•Invoice method/tax credit method•Subtraction method /value addition method

ADDITION METHOD

•Suitability•Demerit•Computation

INVOICE METHOD

SuitabilityMeritsComputation

SUBSTRACTION METHOD/VALUE ADDITION METHOD

•Direct subtraction method•Intermediate subtraction method

DIFFERENCE BETWEEN SALES TAX AND VAT

• Base• Double taxation• Rate of taxes• Input tax credit• Computation

CONCLUSION• Value added tax, also known as goods and services tax or GST proves to be beneficial for the government.• Value added tax can also be recovered.

THANK YOU