Full Form of VAT | VAT Full Form | Meaning of VAT | About VAT
Full Form of VAT is Value Added Tax: VAT full form is value added Tax is an taxation that’s obligatory on tangible goods and products. If we tend to see it from customer purpose of view, it’s the tax on price of merchandise. From the seller’s purpose of view, it’s a tax on the value of product. Here, marketer charges tax quantity of vat from the client on those merchandise that are sold-out by him. When assembling the tax, vendor should submit tax quantity to department of that specific amount. Tax quantity of vat is submitted quarterly in Delhi as per Dvat Rule (Delhi value additional Tax Rule). The most purpose of vat tax is to come up with revenues for the govt. department.
Every company that purchases material or product for the aim of marketing should register beneath vat rule. Here it’s necessary to note that each state have their regulation and turnover level (thresholds limit) at that registration becomes mandatory. The corporation or firm which are registered in Dvat act should deduct vat tax on product that’s sold by them to their customers. After that, the firms should submit vat tax quantity to government departments. Currently vat tax is removed India taxation system and gst tax is introduced from July 2017.