Impact of Value-Added Taxation on Indian Economic System
IMPACT OF VALUE-ADDED TAXATION ON INDIAN ECONOMIC SYSTEM
A tax is “a backbone of every country to meet their social obligations”. Value Added Tax (VAT) is a general consumption tax assessed on the value added to goods and services. It is a general tax that applies, in principle, to all commercial activities involving the production and distribution of goods and the provision of services. India has a well-developed tax structure with clearly demarcated authority between Central and State Governments and local bodies. In one of the large-scale reforms of the country's India has finally agreed the launch of its much-delayed Value Added Tax (VAT) from 1st April 2005. At a rate of 12.5%, VAT will come in on April 1, 2005. The tax, agreed after state finance ministers met in New Delhi, is designed to make accounting more transparent, cut trade barriers and boost tax revenues. In the present work study of Value Added Tax with reference to Udaipur District, Rajsthan, India has been undertaken. This study also tries to prove whether the revenue derived from the VAT. The objective of the study are to study about value added tax system in general, to study the profile of VAT payers and VAT administrators, to examine the influence of various factors on the work burden of VAT officials, to examine the influence of various factors on VAT compliance by VAT payers, to examine whether value added tax system helps to revenue appreciation to the government compared to other tax systems and finally and to find whether VAT system is convenient to the VAT administrators as well as the VAT payers.
In the present study both primary and secondary data were used with the help of questionnaire from the respondents. The total population of the study consists 260 respondents, which include 130 VAT officials and VAT consultants/and 130 VAT payers. Convenience cum Judgment sampling techniques were adopted in this research. The study has been conducted
A tax is “a backbone of every country to meet their social obligations”. Value Added Tax (VAT) is a general consumption tax assessed on the value added to goods and services. It is a general tax that applies, in principle, to all commercial activities involving the production and distribution of goods and the provision of services. India has a well-developed tax structure with clearly demarcated authority between Central and State Governments and local bodies. In one of the large-scale reforms of the country's India has finally agreed the launch of its much-delayed Value Added Tax (VAT) from 1st April 2005. At a rate of 12.5%, VAT will come in on April 1, 2005. The tax, agreed after state finance ministers met in New Delhi, is designed to make accounting more transparent, cut trade barriers and boost tax revenues. In the present work study of Value Added Tax with reference to Udaipur District, Rajsthan, India has been undertaken. This study also tries to prove whether the revenue derived from the VAT. The objective of the study are to study about value added tax system in general, to study the profile of VAT payers and VAT administrators, to examine the influence of various factors on the work burden of VAT officials, to examine the influence of various factors on VAT compliance by VAT payers, to examine whether value added tax system helps to revenue appreciation to the government compared to other tax systems and finally and to find whether VAT system is convenient to the VAT administrators as well as the VAT payers.
In the present study both primary and secondary data were used with the help of questionnaire from the respondents. The total population of the study consists 260 respondents, which include 130 VAT officials and VAT consultants/and 130 VAT payers. Convenience cum Judgment sampling techniques were adopted in this research. The study has been conducted