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Vat problem

Gaurav Singh (student) (496 Points)

19 October 2011

Can it be said that VAT brings about certainty to a great extent in the matter of interpretational issues?If so,how? (4 marks)

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ABHINANDAN JAIN (CA Student) (886 Points)
Replied 20 October 2011

® The VAT is a system based simply on transaction. Thus there is no need to go through complicated definitions like Sales, Sales Price, Turnover of Purchases, turnover of Sales, etc.

® The tax is also broad based and applicable to all sales in business (i.e. all types of business for ex-service, sales) leaving little room for different interpretations.

® Thus, this system brings certainty to a great extent in the matter of interpretational issues.

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Gaurav Singh (student) (496 Points)
Replied 23 October 2011

Ya, this question is of VAT benefit-"certainty"

DIVVELA SANKARA PRASAD (Sr.Asst) (22 Points)
Replied 23 October 2011

Hi Friends,

Pls clarify - Whether the sale of scrap and waste oil obtained on servicing of vehicles by a automobile business assessee is liable for VAT under A.P.Vat Act.