Benefits of VAT

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

Few important benefits of implementation of VAT are:

VAT prevents repeated taxation on the same product.

Simple and transparent, since the amount of tax is known at every stage of goods sale and purchase.

Fair and Equitable, since its introduces uniform tax rate across the state.

Zero rating of tax on exports is possible in case of VAT.