VALUE

AND THEIR
SURVERY ADDED
OF TAX
PECEPTION
RETAILERS
ABOUT
(VAT)
 Business environment
GROUP MEMBERS :-
•PINKESH
•DHIRAJ
•SWAPNESH
•NITIN
 ………..

• VAT replaced sales tax on 1 April 2005. Of the 28 Indian states,

• eight did not introduce VAT. Haryana had already adopted it on 1 April
2004.

• Due to the federal nature of the Indian constitution, the states do have the
power to set their own VAT rate.

• OECD (2008, 112-13) approvingly cites Chanchal Kumar Sharma (2005) to

answer why it has proved so difficult to implement a federal VAT in India.
 Tax rates
Country   Standard Reduced rate   Local name
rate  

 India 12.5% 4%, 1%, or 0% VAT = Valued

Added Tax
VAT TERMINOLOGY
VAT ( Value Added Tax)
• This is the new system being
implemented from April 1, 2005
in A.P and other states.
• Unlike, Sales Tax, VAT is
calculated based on Input &
Output variation.
 VAT TERMINOLOGY – INPUT TAX
INPUT TAX
• Input Tax is the Tax shown in our purchase bills.

• As per the norms, every trader need to show

Tax separately and it is considered as Input Tax.

• Apart from Trade Purchases, Tax on Capital Goods

purchases like A.C., Computers etc.. is also considered
for this Input Tax.
 VAT TERMINOLOGY – OUTPUT TAX

OUTPUT TAX
Output Tax is the Tax charged on all the Taxable sales of
a Vat Dealer.
For Ex. Tax shown by us our Output Tax and it becomes
Input Tax for our customer.
VAT APPLICABILITY
Below 5 Lakhs turnover – No Tax & No.
Registration required.
5 – 40 Lakhs – TOT will apply & VAT is
optional.
Above 40 Lakhs – VAT will apply.
 VAT RATES
There are three main rates for Input and Output
Vat tax.
0% for Agriculture products.
1% for Jewellery
4% for Pharma, Computers, Soaps etc.
12.5% for FMCG, Automobile
WITHOUT ANY TAX
• A DVD manufacturer spends Rs.100 on raw
materials and uses them to make a DVD.

• The DVD is sold wholesale to a DVD retailer for

Rs.120, making a gross margin of Rs.20.

• The DVD retailer then sells the DVD to the

consumer for Rs.150, making a gross margin of
Rs.30.
PERCEPTIONS FROM
RAYMOND
In Baroda city,

• Vat is good for all….

(For customers, manufactures, and retailers)

• Your work will be legal and white (transprant),

• There is no tax in the business of fabric, but

In the readymade garment VAT (4%,+1%)will be there,

• for fabrics, the company decide the price of a product in

that price,
VAT will be included, it will be show in the invoice bill.
• As per his view point,

• If they purchase any kind of materials In Gujarat, so they have to

pay 4% as value added tax. That is call GST( Gujarat sales tax).

• If they purchase any goods out of Gujarat 2% VAT will be there ,a

That is call CST( central sales tax)

Vijay jain,(9825566633)
Vardhman textorium,
Raymond,baroda.
AND FROM KOUTONS….
In Baroda city……

•“VAT is not good at all”

•Because of vat all manufacturing channels selling their products

In high price.

•It is use as salary of government employee, because of vat

Government employee become millionaire, because high-level
Of corruption is there in whole Indian politic system.

•Proper utilization of tax is not in India, all money

which government collect on the name of taxies ,that money
went to minister’s bank accounts.

•VAT only reach to government when shopkeeper give original

Bills To customers, otherwise that money went to shopkeeper’s
pocket
That money will not be reach to government.
CONTINUOUS……..
•In India 50% retailer are not give original bills to the customers.

•It is reflect in government income, penalty systems is there but

Because of corruption, system not working as per the law of India.

• in our shop company gives us a software for bills, so we can not

cheat the government. Our work will be legal.
AND FROM LIVERPOOL…
In Baroda city…….

• vat must needed, because government get

income.

•That money use for development of nation.(in

defense, infrastructures like roads, highways,
over bridge, dams,
government school. College etc. hospitals and
organization etc….

• poor and needy people get education, foods,

and employment (roti,kapda aur makan).
CONTINUOUS……..
•During the time of war and natural calamities this tax
will be useful.

•Collecting Vat is rights of Indian government.

•government collect that money from public .

•Government give that money back to public on the name of

“Development”

Milan jain,
Bhavin,liverpool,
Baroda.
AND FROM GENERAL PROVISION STORE

In wagodiya….

•On the business of more than 10 lakhs VAT should be payable.

•Normally small shopkeeper didn’t pay vat,

•Mostly in villages shopkeeper pay octroy, and “panchayat”

collect it .

•He gives one example:-

Price of tirupati oil of 5litter on price tag from manufacturing it’s

Rs.495.same product available in bigbazar at Rs.465,and in our
shop price of tirupati oil is Rs.450.
CONTINUOUS……..
•From different state percentage of vat are not same.

•In Gujarat percentage of vat(4%) is high compare to other

state.so from his point of view percentage of vat for all 28
states will be same.

•in Gujarat BJP collect more vat compare to other states, which
become burden for public.

•Original bills system is the best way to collect the vat.

Ajay bhai,
Ramanlal maganlal pola,
General provision store,
Wagodiya.
AND FROM MEDICAL STORE
In wagodiya…….
•Form his point of view he is very happy with vat but he is
not at all happy why medical products are included vat.

•If basic necessity product like vegetable, sugar, fruits, milk,

etc…are free from vat why tax been impost in medicine.

•He agree about one thing vat is good for government is one
Kind of tools for collect income money.

•We have to follow rule and regulation of government.

•There is no vat in textile thought it is costly, so vat should

Be collected from all the products and it should be equal.

•Owner of general provision store and readymade cloth owner

They never give you original bill of products.
CONTINUOUS……..

•Today, I pay tax by forcefully because it is compulsory and statutory

Requirement .

•If government do their work properly and honestly, so I feel very happy
To pay a tax.

•What ever money I pay to government it should be use for noble cause.

•We pay tax for public welfare but that money has been used for the
Welfare of minister.
it

Rajubhai,
Akash medical store,wagodiya.
THANK YOU…..