What is VAT and why it is compulsory?

@sand102 (368)
India
January 18, 2007 7:06am CST
What is VAT and why it is compulsory?
4 responses
bhattee
@bhattee (164)
• Pakistan
19 Jan 07
Value Added Tax is An Indirect Tax. Its Regressive in Nature and is Levied Upon consumer Goods. The Burden Of this Depends Upon The Elasticities Of Demand and suypply of the Product Or A Service
bhattee
@bhattee (164)
• Pakistan
20 Jan 07
VAT is compulsary to control the consumption of sum goods like alcholic drinks.too much of consumtion can also lead to health problems which raise the governments expenditure on health.the government needs taxes inorder to provide public goods and services.
nutcase222
@nutcase222 (676)
• India
19 Jan 07
VAt stands for Value Added Tax. Its tax on exchange.It was invented by french economist in 1954. Its indirect tax, in that the tax is collected from someone other than the person who actually bears the cost of tax(namely the seller rather than the consumer). To avoid double taxation on final consumption Export are usually not subjected to VAT.
jamanrk786
@jamanrk786 (333)
• India
18 Jan 07
value added tax' i am also quitely new too...
mohanforu
@mohanforu (266)
• India
18 Jan 07
Value Added Tax.It is indirect tax,tax is collected from someone other than the one who bears the cost of the tax(namely seller rather than consumer).