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Tds on vat

RAMAKRISHNA (semi Qulalified cost accountant) (37 Points)

28 March 2016

Dear Sir/Madam

Can u explain deatailed TDS on VAT, Which areas it will be applicable

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venkatesh (tax consultant) (66 Points)
Replied 04 April 2016

TDS :

A method of tax collection on income assessments in India. The tax collection can be affected if the income increases. The taxpayer pays tax on income from the preceding year. Tax collection is therefore delayed until the year has been completed. In order to prevent from hiding income, the government collects some amount of tax owed from the amount that is receivable by the tax payer.

VAT :

A value-added tax (VAT) is a type of consumption tax that is placed on a product whenever value is added at a stage of production and at final sale. Value-added tax (VAT) is most often used in the European Union. The amount of value-added tax that the user pays is the cost of the product, less any of the costs of materials used in the product that have already been taxed.