VAT means value added tax. It is a multi-point tax because
it is charge on both sales and purchased. When it is
charged on sales it is called output vat and when it is
charged on purchase than it is called input vat. When input
vat is exceed on output vat, that exceed amout are called
input credit which is refundable. If output vat is excess
on input vat than it is payable.
So we can say that VAT is a tax which is coming
in lieu of sales tax.
VAT means value added tax. it was introduced in
andhrapradesh in the year apr 2005.
In india vat is collected only on goods.
vat is collected on all purchase and sale of goods.
vat is collected on purchase of goods is called input tax.
vat is collected on sale of goods is called out put tax.