14 October 2011
Mr. Author, Only COT i.e.(composition of tax) is an alternative to VAT. COT is the simplified method of paying tax at a different rate ,say,4 or 5%,on the total receipts,without going to details such as output tax,input tax,and exemptions. VAT is subject to all these details.COT amounts to higher payment of tax due to no input credit and exemptions.VAT needs detailed accounting and returns,but for COT only total receipts re to be declared. etc. You can change from one system to another by filing an application on plain paper to VAT officer. MJK