VAT query

This query is : Resolved 

07 August 2009 I want to know whether VAT is charged on services as well?
VAT is charged on final price of goods whereas sales tax is charged when goods are manufactured. So how can we say that VAT replaces sales tax?
Is it not true that VAT increases the price of the product?

08 August 2009 VAT is generally charged of goods and works contracts and not on services.
When goods are manufactured excise duty is leviable on excisable items.VAT is applicable on sale of the product.
Sales Tax has been replaced by VAT by almost all the States. You may assume both as the same.
True, VAT increases the price.

11 August 2009 it's right VAT generally charged where work contract is applicable, i.e. where material is not supplied directly and it has invlovment of labour as well.
both sale tax and VAT charged on selling price.
i don't think that VAT increase the price of the product.
as per sale tax concept, sale tax is aslo part of cost for dealer, but in VAT concept, there is provision of input credit and set off against VAT payable is avilable.




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