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Right now Sales Tax has been replaced by VAT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.
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