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

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FRANCE- Cat and Mouse Games

 by Western concepts like VAT (Value Added Tax) in the Indian environment. The taxmen in North Block, while translating VAT into MODVAT, have tried to please everybody. 'Revenue neutrality' has been ensured by raising excise on final products. Tax collection has been guaranteed by laying down that the duty has to be first paid by the input manufacturer. Subsequently, the final product manufacturer.gets the duty credit. The burden of MODVAT administration has been reduced by leaving out key sectors like fuel, textile and leather from the MODVAT scheme. The machinery industry gets MODVAT only as input users, their final products do not get duty credit.
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