The VAT has been implemented by almost all the States and UI Territories except Uttar Pradesh and Tamil Nadu.
Sooner or I these states will also fall in line as any state can not afford to re-isolated with tax reforms. Businesses run by are also liable charge tax and are eligible to take tax credit under respective VAT laws.
Several large corporate houses in India run educational or institutions near their place of operations and more particularly their plant locations situated in remote areas where providing facilities is necessary to retain employees as part of total conditions.
In order to maintain relations with residents of local a and also to discharge their Corporate Social Responsibility persons from the general public are also allowed education or treat in these institutions. At times these activities are run by a corporation under the umbrella of specifically formed trusts or institutions. Daring out of operations of these institutions is met by the organizations business/industry. With CSR becoming a buzzword courts have recognized that activities run near business places are unavoidable and are the business.
tax credit under respective VAT laws
After an introduction of VAT. It makes a strong case to these activities with the main business. With this expend incurred for running these activities will become part of main business expenditure and organizations will become eligible to the credit of state VAT/service tax paid on a host of inputs in Phy’s intangible forms.
VAT means a tax on the sale of goods at every stage when it changes hands with the provision of credits for input tax paid at the time of purchase of goods (intended for resale, to be used as raw material for the purpose of manufacturing or for packing) or capital goods for the purpose of manufacturing. And for more marketing, you can get information from ngos and marketing.
Firstly, tax liability on sale made by the dealer will be calculated on similar lines as is presently being done under the Sales tax Act and thereafter tax paid on purchases will be deducted and the net amount will be paid/claimed for refund will be made by the dealer. The procedure can be summarized as under 1. Calculate the tax liability of sales, gross turnover rate of tax. 2.Less: Tax paid on the purchase of goods, capital goods to be used for purpose of manufacturing.
The VAT is a multipurpose levy of sales tax that enables the person to claim set off of tax which he pays on the purchases. The system of VAT is so designed that the final levy and burden of the tax on the goods is borne by the final consumer of the goods.
