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JITENDER SINGH BISHT

JITENDER SINGH BISHT (Querist)
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06 April 2016 what is difference between sales tax and vat

Nirav Kansagara

Nirav Kansagara (Expert)
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07 April 2016 Right now Sales Tax has been replaced by VAT

But for understanding difference between both are :

1) Sales Tax is a tax on sales. Value Added Tax is a tax on value addition done by each party of the supply chain like supplier, producer, wholesaler, distributor or retailer, etc.

2) Sales Tax is a single-stage tax, but VAT is a multi-stage tax.

3) Input Tax Credit (ITC) is available in VAT but not in Sales Tax.

There are others difference also.