ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846


Value Added Tax

The value added tax is being introduced in an imperfect manner in India because there has to be a compromise between the interests of different states as well as a consensus and also because not enough thought has gone into working out the Acts which have been drafted so far. Once we are able to pinpoint where exactly the effort has gone wrong, it would not be difficult to improve matters.

National and Sub-National VATs

India's unique indirect tax system with the central government imposing a broad spectrum of excise duties on production and manufacture, and the states assigned the power to levy sales tax on consumption and on services has meant that the adoption of a European-style VAT has been slow in India. This paper examines the problems and prospects of introducing VAT taking account of the experience of states' experiments in adopting VAT in some form or other.

Central Value Added Tax

Excise taxes were, till 1998, the most disappointing feature of the entire tax reform process. But the substantial progress made in the last two years must now be brought to fruition by completing the move to a comprehensive central producer VAT (CENVAT). A simultaneous reform of the central service tax system would lay the ground for its integration into the CENVAT, perhaps a year or two later.
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