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VAT:
VAT is an abbreviation of Value Added Tax, is a sales tax charged on commonly the transactions of business to business and to customer in United Kingdom. It is also charges on services, goods which are traded from outside of EU and export into the United Kingdom from the European Countries.
In Tamil Nadu, in order to establish the accurate tax amount the sales tax for the product is to be charged heavily. After the introduction of Value Added Tax many changes were introduced in various conditions of sales tax, which includes some changes in the regulations of sales tax.
Few changes are,
- Sales tax for tea was decreased from four to one percent.
- Oil and pulses are free from this tax.
- In Coimbatore and Coonoor tea sales centers are gifted with the decrease in sales tax of central and other sales tax which is also reduced from eight to four percent. These centers are also free from any additional and other tax.
- In Tamil Nadu, Central Sales Tax in the sales centers on tea is decreased to one percent from two percent.
- If a brick producing purchasing the fly ash, there is no sales tax for that.
- Sales tax on the approved Tamil software is also free.
VAT could not be suitable for many customers. In various cases general sales tax is lower than the VAT, which increases the product price. Devastating results is the outcome by the introduction of Value Added Tax. For many customers, it may difficult to pay the additional tax amount; they could not able to pay for the increase result of price in the decreasing sales.
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