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

Value Added TaxSubscribe to Value Added Tax

Value Added Tax

The value added tax is being introduced in an imperfect manner in India because there has to be a compromise between the interests of different states as well as a consensus and also because not enough thought has gone into working out the Acts which have been drafted so far. Once we are able to pinpoint where exactly the effort has gone wrong, it would not be difficult to improve matters.

Are We Heading Towards a Destination-Based VAT?

There will be, it has been announced, a shift from the current system of commodity taxation at the state level to value added taxation from April this year. This paper considers whether what is planned for implementation is in consonance with the core concepts of (destination-based) value added taxation and assesses the extent to which the present intiatives will lay a sound foundation for eventual modernisation of the indirect tax structure at the state level. The study has been made from the perspective of the existing commodity tax structure of Karnataka.

Calcutta Diary

Substitution of sales taxation by value added tax, it is being claimed, will reduce distortions in the economy caused by multiple rates of taxation of inputs and help the establishment of an integrated national market. What a pipe-dream. A seemingly fractured market which nonetheless promotes faster and more balanced development is to be preferred any day to an arrangement where the national market is technically integrated and yet overwhelmingly unfriendly to growth. Who will tell that though to the docile chief ministers and state finance ministers who have volunteered to sign their own death warrants?
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