Merits and demerits of Value added Tax (VAT), Indirect tax laws Video Lecture | Indirect Tax Laws - B Com

value-added tax part 5 in this part we
will discuss the advantages or
disadvantages of the back so first look
at the advantages direct question at the
exam may write the advantages or
disadvantages of the VAT system the
Pella dictate advantages of bad first
advantage is very simple to apply Joe
system have both simple application
Kelly only few tax rates are there for
example 12.5 percent four percent one
percent in zero percent each are he tax
rate here the complications come no
cascading effect we have already seen
the cascading effect jonatha have what
tax on tax yes same amount is taxed
again and again though a system may
wanna he hota that is no cascading
effect helps in price reduction because
cascading effect Nyota same value again
again in attack select auto price
control Marathi the price reduction of
that transparency proper records are
kept after the guys may sale price sale
invoice case add purchase invoice go
magical day so proper records are kept
so full transparency is maintained end
of inspector Raj up joby tax liability
here you can just submit the return and
make the payment to assessment both his
simple him only in case of notice Agora
top coat Department Sato he apke
detailed checking with her otherwise
simple self assessment procedure
beneficial to exporter there is no tax
in case of export of goods out of the
country so exporter grab Korean though
use case make VAT neglect ah and
beneficial in case of export you can add
further advantages also here and there
now discuss few disadvantages as just
minute but they're pokey question
advantage disadvantage is que habla con
azúcar they will accept their but there
are few which have been mentioned
important two advantages we have already
seen now let's take the disadvantages
now the price of few Goods may rise
higher tax rate at 12.5% as we have seen
though kissy-kissy the luxurious item
rate a whose May price bar sakta have
higher tax rate given a say increase
paperwork as we have already seen ki
aapke sorry records maintained can
import a sales invoice kissa purchase
invoice area to match Kearny Berkeley
here then only you will get the tax
credit the paperwork is say Bharata
blockage of funds a be interesting point
him when you purchase the raw material
you have to pay the tax
yay tax drop l'apicio a credit mil
Tohoku but at the time of sale to japax
a layer data you will not be able to
take the advantage of tax paid at time
of purchase did you say up cup blockage
of fun hood a time tax evasion may be
increased
yeh point as a hickey tax evasion is the
resep Arreaga he up casual paperwork
rata mostly it will be on the paperwork
there may be chances key up fictitious
invoice purchases invoice the car give
credit lasik they had so in this regard
the tax evasion may increases no credit
on interstate purchases this concept you
have to understand as we have seen that
a Goods him in a Beco selkie goods
yaja protects picasa 100 rupees then
suddenly he has sold it to see
out-of-state ages 100 rupees a credit
thigh Appa which B had taken
it will not be available to see because
of the change of state so this is a
disadvantage in case of that system
either up within the state purchase car
they do taxpayer the purchases pills car
it will die but if you purchase from
outside the state you will lose this
benefit of text after that we can see
exemptions and composition schemes so
there are so many items which are
exempted from the tax and Composition
scheme come at level instead of
calculating just lump sum up to P Turner
data tax so in because of these two
methods or schemes this VAT system
becomes little bit difficult or
complicated different state different
tax laws as it is a state subject Alec
Alec state may Allah Allah fat kill okay
this also make it complicated