A STUDY ON IMPACT OF VALUE ADDED TAX (VAT) IMPLEMENTATION IN INDIA

DR.A.JAYAKUMAR., Ph.D

Associate Professor and Former Controller of Examinations Department of commerce Periyar University Salem636011. e.mail !odcom"ya!oo.com

ABSTRACT
Value added tax (VAT) is a type of indirect tax that is imposed on goods and services. Sometimes, when the government operates on a budget surplus or wants to increase its revenue in order to finance its budget deficit. A uestion that arises is whether value added tax has been a boon or misery for a developing country li!e "ndia. Around #$% countries in Asia have recogni&ed the importance of value added tax. "n one of the most large scale reforms of the country's public finances in over the past () years, "ndia has finally agreed the launch of its much delayed value added tax from #st April, *))( at a rate of #*.(+. The tax rate is fixed by meeting of different state level ,inance -inister, in .ew /elhi, designed to ma!e accounting more transparent, to cut short trade barriers and boost tax revenues. According to 0hana!ya, 1A government should tax its people li!e a shepherd shears a floc! or a bee gets nectar from a flower2. The tax is levied not only on products but services that is the source of revenue for the government to plan for development activities in the country. Since, "ndia is a developing country, the main source for revenue is generated through tax levied on the individual on the purchase of goods or services. The government imposes taxes and duty charges on the fellow people for fulfilling the infrastructural, technological, entrepreneurial demand of the country. 3hether the imposition of high tax on the society is favorable or unfavorable in the present scenario to meet the technological and infrastructural demand4 "t has been identified that rural people are charged more tax than urban people due to subsidi&ed rate provided to them in food products, transportation, electricity, water etc. for these facilities they are charged indirectly from their source of income li!e agricultural and allied activities. The uestion that arises is5 do value added taxes promote prosperity and well being for the common men4 VAT is omnipresent in all goods and services provided to the consumer. The paper aims at presenting the importance of value added tax in the "ndian society, its impact and the future prospect for product and service industry in "ndia. The data collected is secondary based from the governmental publications and standard for chartered accountants. Keywo !"# #al$e added taxes levied% socio&economic effects% implementations of tax% 'ndian society% and calc$lation of val$e added taxes.

$. INTRODUCTION
'ndirect tax system plays an important role in t!e economic development of a co$ntry (y infl$encin) t!e rate of prod$ction and cons$mption. *!e +overnment of 'ndia !as after committin) to t!e ,orld *rade -r)ani.ation /,*-0 re)ime% decided to moderni.e and streamline its indirect taxation% in t!e li)!t of t!e experience of ot!er ,*- mem(er co$ntries. #al$e Added *ax /#A*0 means t!e tax 1!ic! is paya(le only on val$e&added. 't is m$lti&point tax system ($t 1it!o$t t!e effect of do$(le taxation. #al$e is added to t!e prod$cts% 1!ic! an or)anisation ($ys from ot!er or)anisations s$c! as ra1 materials% partly finis!ed )oods etc. After ($yin) t!e or)anisation applies its o1n la(o$r and mac!ine to man$fact$re t!e final prod$cts. #A* is a tax% 1!ic! is imposed at every sta)e of prod$ction ie.% from prod$ction level to retail level. Under #A* tax is calc$lated on val$e Added 1!ere val$e added is t!e difference (et1een sales val$e and p$rc!ase val$e. *!e #A* as a system of tax% concept$ally% !as (een of )reat interest amon) t!e early 1riters in p$(lic finance. 'n t!is researc!% pro2ect researc!er try to explain t!e concept of #A*% t!eir proced$res% c!allen)es amon) t!e 'ndian environment and opport$nities% 1!ic! are availa(le $nder t!is re)ime. 'nitially% all states 1ere to move to #A* system (y 3000% ($t administrative pro(lems and concern over t!e reven$e implications of t!e c!an)e delayed t!e sc!ed$led implementation. 't 1as postponed five times (efore implementation. 'n fact% introd$ction of a f$ll fled)ed #A* in 'ndia seem to present n$mero$s administrative and constit$tional diffic$lties% incl$din) t!e vexed 4$estion of Union& State relations. 'n addition to t!is% implementin) #A* in 'ndia in context of economic reforms !as paradoxical dimensions. -n one !and economic reforms !ave led to more decentrali.ation of expendit$re responsi(ilities 1!ic! in t$rn demands more decentrali.ation of reven$e raisin) po1ers if fiscal acco$nta(ility is to (e maintained. 5$t on t!e ot!er !and% t!e process of implementation of #A* can lead not only to reven$e loss for t!e states ($t can also steal a1ay t!e states a$tonomy indicatin) more centrali.ation. *!$s% t!e need is to develop s$c! a 6Federal Friendly 7odel of #A* /alon) 1it! a s$ita(le compensation pac8a)e0 t!at can (e implemented in 'ndia 1it!o$t compromisin) federal principles.

%. STATEMENT OF T&E PROBLEM

'n todays 1orld of rapidly c!an)in) tec!nolo)y% 1!olesale trade firms are essential to t!e economy% (y c!annel of distri($tion. *o meet t!is c!an)in) environment% t!e 1!olesalers sell t!e prod$cts to (e $sed primarily for resale or for ind$strial $se 1it! t!e c$rrent #al$e Added *ax sc!eme. *!e st$dy is foc$sed on impact of val$e added amon) t!e 1!olesalers% 9etailers% c!artered acco$ntant% *ax officials and cons$mers in 'ndia. *!e common o(2ective of #al$e Added *ax is to simplify tax str$ct$re% to create $niform common mar8et 1it!in t!e co$ntry 1!ic! 1ill (rin) do1n prices t!at 1o$ld ena(le t!e prod$cers of )oods to red$ce costs% face competition from a(road and to increase exports. #al$e Added *ax 1ill !elp common people% traders and also t!e )overnment.

'. OBJECTIVES OF T&E STUDY

1. *o identify t!e c!aracteristic feat$res of #A* and 'mplementation domain. 2. *o analy.e t!e perceptions of ,!olesalers% 9etailers% C!artered Acco$ntant% *ax -fficials and Cons$mers re)ardin) #A* 'mplementation. 3. *o determine t!e impact of #A* on satisfaction over t!e mar8eters as 1ell as cons$mers. 4. *o identify t!e Pro(lems and Prospects in t!e lac$na of +overnmental and 'mplementation domain.

(. RESEARC& MET&ODOLO)Y (.$ S*+,-./0 P-*/ */! D*1* Co--e21.o/

*!e st$dy is (ased on (ot! primary and secondary data. *!e primary data is collected from t!e *ax -fficials% C!artered Acco$ntants% ,!olesalers% 9etailers and Cons$mers. *!e 4$estionnaire comprises t!ree (road cate)ories namely ($siness profile% tax implementation sta)e% tax o$tp$t sta)e and its impact over mar8eters and cons$mers. *!e secondary data m$st (e st$died in t!e form of #A* collection for (ot! central and state )overnments from t!e date of implementation. 't is (etter to collect t!e 1ide responses from t!e fo$r ma2or metro and cosmopolitan cities. *!e Convenient 9andom Samplin) tec!ni4$e is exploited to o(tain t!e responses from t!e re4$ired domains of #A*. A sample si.e of :0; respondents is fo$nd $sea(le for completion of t!e pro2ect. Fre4$ency Distri($tion to determine t!e demo)rapic factors and ot!er varia(les to classify t!e perceptions re)ardin) #A* implementation. 4.2 A/*-y"." o3 !*1* */! 1oo-" 1. Factor Analysis follo1ed (y Cl$ster to red$ce t!e n$m(er of varia(les into predominant factors and to classify t!e perceptions re)ardin) #A* implementation. 2. A Parametric Approac! t!ro$)! *&*est to determine t!e si)nificant difference amon) t!e cate)orical varia(les. *!is 1ill (e $sef$l in o(tainin) t!e 1ide ran)e of perceptions from different domains. 3. +<7 /+enerali.ed <inear 7odel0 1it! (ot! Univariate and 7$ltivariate met!od or indispensa(le in explainin) in infl$ence of independent varia(le on dependent varia(les pro(lems and prospects of #A* implementation. 4. S$m% Avera)e% Standard Deviation and percenta)e to determine t!e varia(les re)ardin) *amil =ad$ /300>&300?% 300?&300;0 and @arnata8a /3006&300>% 300>&300? and 300?& 300;0 details from Commercial tax Department after #A* implementation.

4. LIMITATIONS OF T&E STUDY

1. *!e st$dy 1as restricted to *amil =ad$ and @arnata8a only. 3. 9espondents vie1s and opinion may !old )ood for t!e time (ein) and may vary in t!e f$t$re. 3. After 'mplementation of #al$e added tax data only ta8en for t!is st$dy for *amil =ad$ /300>&300? and 300?&300;0 and @arnata8a /3006&300>% 300>& 300? and 300?&300;0.

5. REVIE6 OF LITERATURE
)7 7+7 1h..S ($888) in !is st$dy o$tlined t!e experience )ained in several federal economies% irrespective of t!e fact 1!et!er t!ey are developed or developin)% !as esta(lis!ed fairly (eyond do$(t t!e $ndesira(ility of s$(2ectin) commodity taxation to t1o levels% t!e federal and provincial% partic$larly in t!e context of introd$cin) t!e #A*. ,!ile it is considered necessary to entr$st t!e entire field of commodity taxation to t!e national )overnment 1!ic! is (est e4$ipped to implement t!e #A*% t!e redistri($tion of t!e po1ers of taxation (et1een t!e centralAfederal )overnment and t!e states 1ill depend on t!e sit$ation and circ$mstances prevailin) in eac! co$ntry and t!at no )enerali.ation may (e possi(le 1it! re)ard to assi)nment of specific taxes to t!e states. 'nternational experience !as s!o1n t!at (ot! personal and corporate income taxes are )ood candidates for partial assi)nment% partic$larly in lar)e federations ($t t!e same cannot (e said a(o$t a tax li8e t!e one on nat$ral reso$rces. Similarly% 1!ile property taxes !ave (een traditionally assi)ned only to t!e s$( national )overnments% t!e system is some1!at different in 5ra.il% 1!ere $r(an property is taxed at t!e m$nicipal level% 1!ile t!e federal )overnment levies and administers t!e tax on r$ral property. *!erefore it may (e necessary for eac! federal co$ntry to evolve its o1n system (y applyin) t!e a(ove principles. S797+* M79ho,*!hy*y (%::$) in !is st$dy ne$trality of #A* is no )reat virt$e% t!at cascadin) effect can (e removed .ero&ratin) can (e ac!ieved (y alternative met!ods% t!at #A* does not (oost exports% 1e s!o$ld reconsider t!e adoption of #A* even (y promisin) a s$(sidy is an Bad !oc steppin) stone to doomC. +en$ine tax reforms are /a0 t!ree rates of d$ty in Central Excise% /(0 t!ree rates in retail sales tax% /c0 red$ction in exemptions drastically in excise and sales tax% /d0 $niformity of sales tax floor rates% /e0 red$ction and $ltimate removal of CS*% /)0 ori)in&(ased sales tax for inter&state sales% /!0 )ivin) more service tax to states (y common consent% and /i0 introd$ction of a proper a$dit set $p. All t!is 1ill constit$te a m$c! (etter reform. S797+* M79ho,*!hy*y (%::') in !is st$dy /a0 #A* is not t!e (est form of contention tax% especially in a development economyD /(0 't is not s$ited for 'ndian federal. /c0 An imperfect #A* 1o$ld not serve t!e p$rpose for 1!ic! #A* is (etter introd$cedD and /d0 a (etter c!oice 1o$ld (e to com(ination of reformed CE=#A* sales tax 1it! $niform rates in all red$ction in exemption CS*. 5

K.N* *y*/* (%::4) in !is st$dy t!e state empo1er committee in 'ndia is plannin) to st introd$ce #A* system at state level from 1 April 300E. As many as 31 states !ave reiterated t!eir commitment to introd$ce val$e added tax /#A*0 to replace sales tax st from 1 April 300E. *!e remainin) states i.e.% U.P.% tamilnad$ and five ot!er 5FP r$led states !ave expressed t!eir appre!ension a(o$t t!e efficacy and reven$e loss (y introd$cin) #A*. *!e #A* system of taxation does not enco$ra)e vertical inte)ration of firms as it is independent of n$m(er of sta)es in t!e prod$ction and distri($tion c!annel. *!e experiences of many developin) co$ntries !ave s!o1n t!at if properly desi)ned and implemented t!e #A* may prove a (etter reso$rces mo(ili.er t!an t!e present sales tax systems. *!e appre!ensions of t!e > states are illo)ical and political rat!er t!an )en$ine economic reason. D .S.B.A9*"h */! D .K.&* ."h97+* (%::5) in t!eir st$dy credit to recover t!e tax paid on t!eir ($siness inp$ts. As a res$lt% t!e system is an effect applyin) tax only to t!e #al$e Added (y eac! vendor. Since% only t!e tax t!at does not ref$nd is t!e tax imposed on final cons$mption t!e tax is e4$ivalent to t!e retail sales tax 1!ere val$e and p$rc!ase val$e. Ge concl$des #A* is not ($rden to t!e man$fact$rer and it facilitates concession to man$fact$rer and it facilitates concession to man$fact$rer in an easier manner. *!e s$ccesses of val$e added system f$lly depends $pon proper plannin) and preparation% so$nd acco$ntin) practices% systematic or)ani.ational a$dit% f$lly acceptance of people% trained manpo1er% so$nd et!ical ($siness practices in ($siness and et!ical )overnment representatives.

;. T&E IMPACT OF VAT IN INDIA

#A* is most certainly a more transparent and acc$rate system of taxation. *!e existin) sales tax str$ct$re allo1s for do$(le taxation t!ere(y cascadin) t!e tax ($rden. For example% (efore a commodity is prod$ced% inp$ts are first taxed% t!e prod$ced commodity is t!en taxed and finally at t!e time of sale% t!e entire commodity is taxed once a)ain. 5y taxin) t!e commodity m$ltiple times% it !as in effect increased t!e cost of t!e )oods and t!erefore t!e price t!e end cons$mer 1ill pay for it. *!e transaction c!ain $nder #A* ass$min) t!at a profit of 9s 10 is retained d$rin) eac! sale.

TABLE NO.$ VAT C&AIN FOR SALE

SA<E " 9S.11: SA<E " 9s. 13:A& C-=SU7E9 '= 5A=+A<-9E 6C -F 5A=+A<-9E

SA<E HAH -F CGE==A' " 9s. 100A& SA<E "9S.13:A&

65 -F 5A=+A<-9E 6D -F 5A=+A<-9E

TABLE NO.% TAX IMPLICATION UNDER VALUE ADDED TAX ACT Se--./0 Se-e B7ye P .2e (E=2-7!. /0 T*=) 100 T*= R*1e :I CS* 13.E I #A* 13.E I #A* 13.E I #A* I/<o.2 e <*-7e (I/2T*=) 10: 13?.3 E 13;.E 0 1E0.> E T*= T*= P*y*>- C e! e .1 : 0 Ne1 T*=O713-o w :.00

11:

1:.3E

0J 1:.3 E 1E.E 0 VAT CST

1:.3E

D Cons$m er

13:

1E.E0

1.3E

13:

16.>E

1.3E $5.;4 (.::

To1*- 1o )o<1.

J=ote CS* Paid cannot (e claimed for credit. CS* is ass$med to remain t!e same t!o$)! it co$ld to (e red$ced to 3I 1!en #A* is introd$ced and event$ally p!ased o$t. #A* can (e considered as a 7$lti&Point Sales *ax 1it! set&off for tax paid on p$rc!ases /inp$ts0 and capital )oods. ,!at t!is means is t!at dealers can act$ally ded$ct t!e amo$nt of tax paid (y !im for p$rc!ase from t!e tax collected on sales% t!ere(y payin) 2$st t!e (alance amo$nt to t!e +overnment.

?. IMPACT OF VAT IMPLEMENTATION IN KARNATAKA

'n @arnata8a t!e )ro1t! of reven$e for t!e mont! of April and 7ay 300E !as (een impressive K t!e )ro1t! in re)istration of ne1 dealers of a(o$t 30I $nder #A* !as led to en!anced reven$e for t!e state. *!e state s performance is 4$ite a(ove t!e avera)e )ro1t! of 13 per cent in tax collections recorded (y 31 states 1!ic! s1itc!ed over to t!e #A* re)ime from April 1 t!is year. Accordin) to t!e commercial taxes department% t!e state collected 9s.;01.36 Crore for t!e mont! of F$ne t!is year compared to 9s.>:1.6 Crore for t!e same mont! last fiscal. Accordin) to t!e provisional fi)$res% t!e department !as collected 9s.3%>E? Crore in t!e first 4$arter /April&F$ne0% compared to 9s.3%161 Crore d$rin) t!e same period last year. #A* !as completely eliminated t!e pro(lem of inter&state sm$))lin) of r$((er. Earlier% t!e !i)!er p$rc!ase tax !ad ind$ced a )reat deal of r$((er sm$))lin) into nei)!(orin)

states s$c! as *amil nad$ and @arnata8a.

8. VAT SYSTEM IN INDIA

'n 'ndia t!ere are fo$r rates of taxes $nder #A* @e o R*1e# Unprocessed A)ric$lt$ral +oods and Export 'temsD O/e Pe 2e/1 R*1e +old% Silver% Precio$s and Semiprecio$s StonesD Fo7 Pe 2e/1 R*1e# 5asic =ecessities% Capital +oods% 'nd$strial and A)ric$lt$ral 'np$ts% AED /Additional D$ties of Excise0 items li8e s$)ar% textiles and to(acco prod$cts. A $niform median rate of 13.E I 1o$ld (e applied to all commodities /a(o$t :3E items0. Certain items li8e Aviation *$r(ine F$el /A*F0% certain petrole$m prod$cts etc. 1ill (e 8ept o$tside t!e #A* re)ime. 9ates applica(le to scrap and o(solete items 1ill (e t!e same as for t!e ori)inal item% at t!e time of disposal. 7ost essential commodities are exempt from #A* or fall $nder t!e fo$r percent cate)ory. *!e #A* rates 1ill (e $niform in all states across t!e co$ntry. *!e same set of )oods 1ill (e c!ar)ed at t!e same rates in all t!e states. All ($siness transaction carried on 1it!in a state (y individ$al% partners!ips% companies etc. 1ill (e covered (y #A*. *!ere 1o$ld (e a level of t$rnover a(ove 1!ic! re)istration 1o$ld (e comp$lsory $nder #A*. -nly re)istered sellers and ($yers 1o$ld (e a(le to claim tax set&offs for inp$ts. Unification of all taxes $nder #A* may res$lt in reven$e losses for t!e states. *o ens$re least disr$ption in t!e process of transition from c$rrent system to #A*% t!e central )overnment !as ass$red t!e states of 100I compensation for possi(le reven$e loss in t!e first year% and t!e rate of >EI and E0I for t!e next t1o years respectively. *o smoot!en t!e road to #A*% t!e )overnment esta(lis!ed an Empo1ered Committee of state finance ministers to monitor and decide t!e policy )$idelines for #A*. A *as8 Force 1as also constit$ted for early implementation of #A*. A model #A* <a1 1as also prepared and circ$lated amon) all t!e states. *!is 1as done to ens$re t!at #A* le)islation of all t!e states and all t!e U.*.Hs !ave common policies and proced$res. *!e ori)inal dateline for implementation for #A* in 'ndia 1as 1 st April% 3003 . 5$t t!is co$ld not (e met since t!e states !ad not (ro$)!t t!e re4$ired le)islation. So finally #A* 1as implemented in 33 states from 1 st April 300E. 10.

VARIANTS (FORM) OF VAT

*!e difference (et1een sales proceeds and cost of materials p$rc!ased from ot!er firms t!e (ase of #A* for any firm% 1!ere p$rc!ases incl$des 9a1 material% Semi &9a1 7aterial% s$pplied $sed in t!e process of man$fact$res and !andlin)% finis!in) )oods ready for resale% mac!inery e4$ipments and ot!er capital )oods. D$e to difference in treatment accorded to capital )oods% t!ere are fo$r varieties of #A*

a0 ) o"" P o!721 1y,e ()VAT) A 'n t!is type only p$rc!ase cost of ra1
materials is allo1ed as ded$ction from sales. =o ded$ction is allo1ed in respect of capital expendit$re and t!is enco$ra)e tax avoidance (y classifyin) Capital Expendit$re and 9even$e Expendit$re .*!e limitations of t!is type of #A* is t!at capital )oods carry a !eavier tax ($rden% as t!ey are taxed t1ice. Sym(olically it can (e presented as +#A* L C M ' L , M P M D 8

,!ere C is Cons$mption% ' is 'nvestment and ,%P and C are ,a)es% Profits /after depreciation0 and Depreciation% respectively.

(0 I/2o+e 1y,e (IVAT) A Gere (ot! p$rc!ase cost of ra1 material and depreciation 1ill (e allo1ed as ded$ction from sales. Sym(olically it can (e presented as
'# A *LCM'.DL,MP

c0 6*0e" 1y,e (6VAT) A *!is 1a)e type #A* (elon)s to capital exemption type of #al$e Added *axes .'t exempts eit!er income from val$e added in prod$cin) t!e capital )oods .'t is also termed as investment earnin)s incl$sion type of #A*. *!e important limitations of t!is type of #A* are t!at la(o$r alone !as to (ear t!e entire ($rden of tax (eca$se of its re)ressively. Sym(olically it can (e presented as
Nf&pL CM1&D&PL, ,!ere Nf L =et national income as a re1ard to factors of prod$ction

!) Co/"7+,1.o/ 1y,e (CVAT) & 'n t!is type of case all ($siness p$rc!ase
incl$din) capital items are ded$cted in order to determine val$e added. Cons$mption type #A* is very pop$lar and is adopted (y most of t!e co$ntries d$e to t!e follo1in) reasons /10 't ma8es no clearance (et1een capital intensive and la(o$r intensive activities. /30 5y ma8in) classification (et1een capital )oods p$rc!ases and reven$e p$rc!ase tax avoidance can (e avoided./30 -n acco$nt of credit met!od administration control (ecomes easy and 4$ic8. /:0 *ax ($rden is al1ays at t!e final sta)e e.). at t!e cons$mption sta)e. Sym(olically it can (e presented as C#A*L,MPMD.'

$$. PROBLEMS OF IMPLEMENTATION OF VALUE ADDED TAX IN INDIA

'n t!is st$dy it is fo$nd t!at t!ere are n$m(er of pro(lems to introd$ce #al$e Added *ax on commodities in different states in 'ndia% ($t in t!is paper only ma2or pro(lems !ave (een ta8en 1!ic! are facin) (y different states for imposin) of #A*% as follo1s B.--./0# *!e main pro(lem of #A* is (illin) (eca$se (illin) is essential for traders to )et t!e re(ate on inp$ts. ,it!o$t (illin) it is diffic$lt to )et re(ate on inp$ts .*!e (illin) of t!e commodities m$st (e a separate entry of (asic price and sales tax% so t!erefore traders )ets t!e re(ates ($t it is very diffic$lt for t!e traders to pass t!e separate entry of (asic price and sales tax.

L*29 o3 U/.3o +.1y# 'n 'ndia t!ere are n$m(er of state 1!ic! !ad already implemented #A*% ($t some state are not a)reed to impose #A* in t!eir state. 'n t!is sit$ation it is very diffic$lt for inter& state transactions of t!e commodities% (eca$se t!ose states% 1!ic! are not implementin)% #A* in t!eir state t!ey prefer to ($y )oods from t!ose state t!at are not implementin) #A*. 9

Co/2e"".o/ 3o New I/!7"1 y# Central +overnment anno$nced concession for ne1 'nd$stries% 1!ic! are to (e esta(lis!ed in r$ral areas. After esta(lis!ment of ind$stries in r$ral areas )overnment does not )iven any concession for s$c! an ind$stries. Practically )overnment does not ma8e any provision for concession of s$c! an ind$stry. +overnment anno$nced concession for ne1 ind$stries only in Air not in practically. N7+>e o3 T*=e" .+,o"e! >y 1he )o<e /+e/1# *!e main pro(lem of #al$e Added *ax are ot!er taxes 1!ic! are imposed (y t!e State +overnment d$e to economic pro(lems of t!e state. Alt!o$)! traders are ready to pay #A* ($t t!ey are !avin) demand t!at )overnment s!o$ld remove ot!er taxes i.e. Entry tax% -ctori% *oll tax% <ocal (ody tax etc. L*29 o3 ./3 *"1 7217 e 3*2.-.1.e"# 'n #A* (illin) is essential for t!e traders ($t it is diffic$lt to maintain t!e infrastr$ct$re% comp$ters% etc. facilities for t!e same. 'n r$ral areas and even in $r(an areas do not !ave s$c! s$fficient infrastr$ct$re facilities (eca$se 'ndia is a developin) co$ntry and !ave a scarcity of finance and tec!nolo)y etc.

De*-./0 ./ V* .e1y o3 )oo!"# 7ost of t!e traders in 'ndia deals in variety of )oods in t!eir s!ops. Different commodity !as different #A* rates. 'n t!at sit$ation it is very diffic$lt for a traders to maintain (illin) on #A* on t!eir )oods% for example a trader deals cons$ma(les items as 1ell as d$ra(le items in t!eir s!op% a cons$mer p$rc!ase one item of (ot! t!e #ariety of (ot! t!e items !ave separate rate of #A* in t!at sit$ation it is very diffic$lt in (illin) of #A*. 12. EVALUATION OF VALUE ADDED TAX IN INDIA #al$e Added *ax is a tax on cons$mption. 't is a m$ltipoint levy collected in installments at eac! sta)e of prod$ction and distri($tion .*!e final and total ($rden of t!is tax is (orne (y t!e domestic cons$mers of )oods and services. 5ein) a tax on domestic cons$mption on #A* is c!ar)ed on )oods exported from t!e co$ntry. #al$e Added *ax is levied on t!e sellers of )oods and services (ased on val$e added (y t!eir respective $nits. *!e (ase for #A* is determined (y #al$e added at a partic$lar sta)e of prod$ction or distri($tions .'n ot!er 1ords inp$ts of a firm are not taxed at eac! point t!e firm is reim($rsed t!e tax 1!ic! it !as already paid at t!e time of p$rc!asin) t!e inp$ts% t!$s t!ere is no cascadin) effect.

'ndirect system plays an important role in t!e economic development of a co$ntry (y infl$encin) t!e rate of prod$ction and cons$mption. *!e +overnment of 'ndia !as after committin) to t!e ,orld *rade -r)anisation /,*-0 re)ime% decided to moderni.e and streamline its indirect taxation% in t!e li)!t of t!e experience of ot!er ,*- mem(er co$ntries. *!e )overnment !as availed of t!e services of t!e international mana)ement&cons$ltin) firm A$t!$r Andersen for draftin) of 9$les% Proced$res and Forms for introd$ction of #A*. #al$e Added *ax is prevalent in over 130 co$ntries .'n 'ndia% introd$ction of #A* 1o$ld (e a !istoric reforms of t!e domestic trade tax system. 't is expected to facilitate t!e State and Union *erritories to transit s$ccessf$lly from t!e Sellers% 1!ile sales tax system to a modern domestic tax system.

10

EFFECTIVENESS OF VAT ON CONSUMERS Price of goods will fall as there will be no tax on tax. In so e cases! the "rice of so e "rod#cts will godown while in a few cases it the total &'(. )elling "rice of *an#fact#res + ,s.10! 000 Profit of wholesaler + ,s. 2!000 Profit of ,etailer + ,s. 2!400 &'( "aid at all stages + ,s.1!800 -inal cons# er "rice + ,s.16!200. TA$%E NO ' CA%CU%ATION OF VAT )*O%ESA%E (ARTICU% ARS Price "a$able &'( reco2erable ,s.12!000/0 .et cost Profit .et selling "rice &'( charged TOTA% T.TEST .il .il ,s.10!000 ,s.1!250 RS 11+2!, ,s.10!000/01 ,s.2!000 ,s.12!000 ,s.1!500 RS 1'+!,, 1 ,s.2!400 ,s.14!400 ,s.1800 RS 1-+2,, .il .il .il .il NI% MANUFACTUR ERS ,s.13!500/ .il .il ,s.11!250/01 ,s.1!250/01 01 ,s.1!500/0 1 ,s.16!200 .il RS RETAI%E RS CONSU MER Example for Calculation of VAT (12 !" TA#A$%E& a$ go #" arginall$. %nder &'( it is the c#sto er who "a$s

(he res"ondents are re3#ested to ex"ress their "erce"tion abo#t i "lication of &'( and its infl#ence o2er the and ar4eting and its b#siness acti2it$. (hese "erce"tions are identified thro#gh strongl$ different characteristics effects and o"ti istic i "act on b#siness establish ent. (he cons# ers ar4eters ex"ressed their "erce"tion in li4erts fi2e "oint scale which range fro disagree. In the ethodolog$ it has been noted that 5 is assigned to strongl$ agreeableness and one ar4eters as well as

strongl$ disagreeableness. In order to #nder"in the exact "erce"tions of the obtained. In this test 3 is considered as h$"othetic the li4erts 5 "oint scale. Opinion on Implementation of VAT &'( I "le entation is an indis"ensable "heno enon to gi2e

"ro"erties of b#siness establish ents a "ara etric t0test is a""lied and following res#lts are ean or the test 2al#e beca#se it is the center of

#t#al benefit to the

5ons# ers! ,etailers! 6holesalers! chartered acco#ntant and tax officials. (he a""lication of t0test exactl$ ascertain the o"inion of i "le entation of &'( on 5ons# ers! ,etailers 6holesalers! 5hartered acco#ntant and (ax officials. (he following are the res#lts of the t0test.

11

Ta/le NO 0 One.Sample Stati1tic1 for Opinion on implementation of VAT S t d . E r M r e o a S D t e N d v . i 40 (ax 72asion (rans"arenc$ I "ro2ed 7x"orts 8o2ern ent Profits *aterial 5ost ,es"onse towards &'( 9iffic#lties are fo#nd in the 40 instr#ction of &'( s$ste than sales tax Inflation ,e2en#e 8rowth (ax as"ects 9 40 9 40 9 40 3.958 4 3.841 1 3.134 5 3.344 .73480 1.0297 9 1.1980 4 1.1380 . 03633 . 05092 . 05924 . 26.37 9 16.51 8 2.270 6.126 . 000 . 000 . 024 . 9 40 9 40 9 40 9 40 9 40 9 3.711 M 5 e 3.584 4 a 3.951 n 1 3.787 3 4.041 6 4.034 2 a 1.0217 t 7 i o .90929 n .78750 1.0367 0 .89154 .84238 . 05052 . 04496 . 03894 . 05126 . 04408 . 04165 14.08 2 12.99 7 24.42 5 15.35 8 23.62 7 24.83 0 . 000 . 000 . 000 . 000 . 000 . 000 r n ( l o w e r ) T S i g ( l i w ( l e 2 e r - d )

. a o

9 40 sales tax :enefits to the c#sto ers and go2ern ent '""roach for the wholesalers and retailers (ax re2en#e to the go2ern ent increased ra"idl$ 7cono ic sit#ations. -ro "ossess the 9 40 9 40 9 40 9 40 9

7 3.501 2 3.376 5 3.545 2 3.462 1 3.379 0

1 1.2566 0 1.2167 3 1.2942 3 1.2521 2 1.1161 2

05627 . 06213 . 06016 . 06400 . 06191 . 05519 6.867 7.464 8.520 6.258 8.067

000 . 000 . 000 . 000 . 000 . 000

the abo2e table it is fo#nd that chec4ing the tax e2asion and trans"arenc$ ean 2al#es of 3.71 and 3.58 res"ecti2el$. 6ith significant t02al#es of 14.082

and 12.997. (herefore it is concl#ded that the i "le entation of &'( is #sef#l chec4ing for the tax e2asion and trans"arenc$ is ab#ndantl$ fo#nd in the i "le entation &'( s$ste . &'( i "ro2ed ex"orts and It increases go2ern ent "rofits "ossess the ean 2al#es

of 3.95 and 3.78 res"ecti2el$. 6ith significant t02al#es of 24.425 and 15.358. (herefore it is concl#ded that the i "le entation of &'( is #sef#l is i "ro2ed for the ex"orts and increases go2ern ent "rofits fo#nd in the i "le entation &'( s$ste . It red#ces the aterial cost and 5o "aring &'( s$ste res"onse towards &'( "ossess the of &'( is red#ces with erstwhile sales tax gi2es ore fa2orable ean 2al#es of 4.0416 and 4.0342 res"ecti2el$. 6ith

significant t02al#es of 23.627 and 24.830. (here fore it is concl#ded that the i "le entation aterial cost and co "aring with the sales tax is ab#ndantl$ fo#nd in the i "le entation &'( s$ste . 12

*ore diffic#lties are fo#nd in the instr#ction of &'( s$ste Inflation increases d#e to &'( i "le entation "rogra is concl#ded that the i "le entation of &'( is of &'( s$ste

than sales tax and ean 2al#es of

es "ossess the

3.9584 and 3.8411 res"ecti2el$. 6ith significant t02al#es of 26.379 and 16.518. (herefore it ore diffic#lties are fo#nd in the instr#ction and increases inflation is ab#ndantl$ fo#nd in the i "le entation &'( ean 2al#es of

s$ste . &'( i "le entation i "ro2es the re2en#e growth and &'( i "le entation increases the confidence of the c#sto ers on their tax as"ects "ossess the 3.1345 and 3.3447 res"ecti2el$. 6ith significant t02al#es of 2.270 and 6.126. therefore it is concl#ded that the i "le entation of &'( i "ro2es the re2en#e growth and increases the confidence of the cons# ers on their tax as"ects. It c#rtails sales tax at different stages and It gi2es #t#al benefits to the c#sto ers and go2ern ent "ossess the ean 2al#es of 3.5012 #t#al and 3.3765 res"ecti2el$. 6ith significant t02al#es of 8.067 and 6.258. (herefore it is concl#ded that the i "le entation of &'( is c#rtails sales tax at different stages and benefits to the cons# ers and go2ern ent. It sets s ooth a""roach for the wholesalers and retailers "ossess the ean 2al#e

3.5452. 6ith significant t02al#e of 8.520. (herefore it is concl#ded that the i "le entation of &'( s ooth a""roach for the wholesalers and retailers. (he total collection of tax re2en#e to the go2ern ent increased ra"idl$ and It is 7cono ic )it#ations "ossess the ore s#itable for the 8lobalised ean 2al#es of 3.4621 and 3.3790. 6ith significant t0 ore s#itable for the globalised econo ic

2al#es of 7.464 and 6.867. (herefore it is concl#ded that the i "le entation of &'( is increases total collection of tax re2en#e and sit#ations. 10. Opinion on Su22e1tion1 for Effecti3e Implementation of VAT &'( i "le entation is an indis"ensable "heno enon to gi2e #t#al benefit (ax s#ggestions for

to the 5ons# ers! ,etailers! 6holesalers! 5hartered acco#ntant and officals. (he a""lication of t0test exactl$ ascertain the o"inion of

effecti2e i "le entation of &'( on 5ons# ers! ,etailers 6holesalers! 5hartered acco#ntant and (ax officals. (he following are the res#lts of the t0test. Ta/le NO !

One.Sample Stati1tic1 for Effecti3e Implementation of VAT a i S D e v i a M e a N %nifor "rod#ct 40 9 classification 40 In"#t tax credit "ractical a""roach to &'( )ingle 6indow assess ent 5o "lete abolition of 5)( 13 9 40 9 40 9 40 9 2.630 8 2.630 8 3.518 3 3.625 9 .94683 1.4629 8 1.3695 3 1.0386 1 . 07234 . 06772 . 05136 . 04682 0 5.104 0 5.452 10.09 3 13.36 9 . 000 . 000 . 000 . 000 n 3.337 4 .89036 S t t i d o . n . 04403 7.664 E r M r e o a r n t d . ( l o w e r ) . 000 T l e S d i ) g . l o ( w 2 e - r

-ro

the abo2e table it is fo#nd that Introd#ction of #nifor

"rod#ct classification

across the co#ntr$ "ossess the

ean 2al#e 3.3374. with significant t02al#e 7.664. therefore it "rod#ct across the co#ntr$. ean 2al#e2.6308. with

is concl#ded that the i "le entation of &'( is #nifor

7xtension of in"#t tax credit to central sales taxes also "ossess the

significant t02al#e 05.104. therefore it is concl#ded that the i "le entation of &'( is extends of in"#t tax credit to central sales taxes. 'do"tion of a "ractical a""roach to &'( a#dits for assess ent "ossess the ean 2al#e 2.6308. with significant t02al#e 05.452. (herefore it is concl#ded that the i "le entation of &'( "ractical a""roach to &'( a#dits for assess ent. Introd#ction of single window assess ent "rocess for all taxes "ossess the ean 2al#e 3.5183. 6ith significant t02al#e 10.093. (herefore is concl#ded that the i "le entation of &'( is single assess ent "rocess for all taxes.

$4. FACTOR ANALYSIS

Factor analysis (y principle component met!od is $sed to red$ce t!e varia(les into pre&dominant factors.

$4.$ FACTORS OF VAT IMPLEMENTATION

*!e #A* implementation comprises 1E varia(les pertainin) to c!aracteristics of #A* and its implementation conse4$ences in t!e researc! t!e #A* implementation opinion is ascertained t!ro$)! 1E varia(les as stated t!e t&test. 't is re4$ire to do1nsi.e t!ese 1E varia(les into predominant factors. At t!is 2$nct$re factor analysis t!e principle component met!od is applied and t!e follo1in) res$lts of ascertained.

14

T*>-e No.5 KMO */! B* 1-e11B" Te"1 3o 3*21o " o3 VAT .+,-e+e/1*1.o/ @aiser&7eyer&-l8in 7eas$re of Samplin) Ade4$acy. .E30 5artlettHs *est of Sp!ericity Approx. C!i&S4$are df Si). Co++7/*-.1.e" I/.1. *1.0 00 1.0 00 1.0 00 1.0 00 1.0 00 1.0 00 1.0 00 E=1 *21.o / .>;; .>36 .?:1 .>?3 .>?6 .>;1 .6:? .6EE .633 .>0; .?>3 .;10 .;1E .>>? .?1> 63;>.1>? 10E .000

*ax Evasion *ransparency 'mproved Exports +overnment Profits 7aterial Cost 9esponse to1ards #A* Diffic$lties are fo$nd in t!e instr$ction of #A* system t!an sales tax 'nflation

1.0 00 1.0 9even$e +ro1t! 00 1.0 *ax aspects 00 1.0 sales tax 00 1.0 5enefits to t!e c$stomers and )overnment 00 1.0 Approac! for t!e 1!olesalers and retailers 00 1.0 *ax reven$e to t!e )overnment increased rapidly 00 1.0 Economic sit$ations. 00 Extraction 7et!od Principal Component Analysis.

From t!e a(ove ta(le it is fo$nd @7- meas$re of samplin) ade4$acy is .E30 and (arters test of 63;>.1>? are statistically si)nificant at EI level. *!e follo1in) comm$nality ta(le identifies t!e nat$re of variance. From t!e a(ove ta(le it is fo$nd t!at t!e variance ran)e from .6:? to .;1E. *!is implies t!e variance ran)e from 6:.?I to ;1.EI. *!is variance implies t!at t!e factor se)mentation is si)nificant and its explained in t!e follo1in) t!e total variance ta(le #A* implementation c!ec8s t!e

tax evasion periodically variance is .>;;. *!is implies t!e variance ran)e is >;.;I. *ransparency is prevailin) in t!e #A* implementation process variance is .>36. *!is implies t!e variance ran)e is >3.6I. #A* improved exports variance is .?:1. *!is implies t!e variance ran)e is ?:.1I. 't increases )overnment profits variance is .>?3. *!is implies t!e variance ran)e is >?.3I. 't red$ces t!e material cost variance is .>?6. *!is implies t!e variance ran)e is >?.6I. Comparin) #A* system 1it! erst1!ile sales tax )ives more favora(le response to1ards #A* ran)e is .>;1. *!is implies t!e variance ran)e is >;.1I. 7ore diffic$lties are fo$nd in t!e instr$ction of #A* system t!an sales tax ran)e is .6:?. *!is implies t!e variance ran)e is 6:.?I. 'nflation increases d$e to #A* implementation pro)rammes ran)e is .6EE. *!is implies t!e variance ran)e is 6E.EI. #A* implementation improves t!e reven$e )ro1t! ran)e is .633. *!is implies t!e variance ran)e is 63.3I. #A* implementation increases t!e confidence of t!e c$stomers on t!eir tax aspects ran)e is .>0;. *!is implies t!e variance ran)e is .>0;. *!is implies t!e variance ran)e is >0.;I. 't c$rtails sales tax at different 15

sta)es ran)e is .?>3. *!is implies t!e variance ran)e is ?>.3I. 't )ives m$t$al (enefits to t!e c$stomers and )overnment variance ran)e is .;10. *!is implies t!e variance ran)e is ;1.0I. 't sets smoot! approac! for t!e 1!olesalers and retailers variance ran)e is.;1E. *!is implies t!e variance ran)e is ;1.EI. *!e total collection of tax reven$e to t!e )overnment increased rapidly variance ran)e is .>>?. *!is implies t!e variance ran)e is >>.?I. 't is more s$ita(le for t!e )lo(alised economic sit$ations variance ran)e is .?1>. *!is implies t!e variance ran)e is ?1.>I.

T*>-e No.; To1*- V* .*/2e E=,-*./e! 3o VAT I+,-e+e/1*.o/

I/.1. *E.0e/<*-7e " Co+,o/e/1
T o t a l V a r i %a n o c f e C u m u l a t i e v %

Ro1*1.o/ S7+" o3 SC7* e! Lo*!./0" C V u a m r u T i l o %a a t n t e a o c i l f e v % :.3:; 3.?1? 3.E?: 3.010 3?.33E 1?.>;0 1>.330 13.:01 3?.33 E :>.11 E 6:.3: E >>.>: 6

*ax Evasion *ransparency 'mproved Exports +overnment Profits 7aterial Cost 9esponse to1ards #A* Diffic$lties are fo$nd in t!e instr$ction of #A* system t!an sales tax 'nflation 9even$e +ro1t! *ax aspects Sales tax 5enefits to t!e c$stomers and )overnment Approac! for t!e 1!olesalers and retailers *ax reven$e to t!e

E.E; > 3.36 3 3.13 0 1.E? 3 .?36 .>0>

3>.31 E 1E.>: : 1:.13 3 10.EE : E.E06 :.>1:

3>.31E E3.0E; 6>.1;3 >>.>:6 ?3.3E3 ?>.;66

.E06 .:30 .3:3 .1>> .133 .113 .0>>

3.3>: 3.>;> 3.3>? 1.1?3 .??0 .>E3 .E1E

;1.3:0 ;:.13> ;6.:1E ;>.E;? ;?.:>? ;;.331 ;;.>:E

)overnment increased rapidly

.036

.1>1

;;.;16

100.00 Economic sit$ations. .013 .0?: 0 Extraction 7et!od Principal Component Analysis. From t!e a(ove ta(le it is fo$nd t!at 1E varia(les are convenient to fo$r ma2or factor 1it! individ$al ei)en val$es :.3:;% 3.?1?% 3.E?: and 3.010 and individ$al variance 3?.33E% 1?.>;0% 1>.330 and 13.:01. *!e 1E varia(les explained >>.>:6I variance 1!ic! is si)nificant to se)re)ate factors. *!e varia(le loadin)s on t!e represented in t!e follo1in) 9otated Compo$nded 7atrix. 16

TABLE No.? ROTATED COMPONENT MATRIX (A) 3o VAT .+,-e+e/1*.o/

$ Approac! for t!e 1!olesalers and retailers 9even$e to t!e )overnment +lo(alised economic sit$ations. Sales tax 5enefits to t!e c$stomers and )overnment 9even$e )ro1t! 'nflation *ax aspects Sales tax at 9esponse to1ards #A* Diffic$lties are fo$nd in t!e instr$ction of #A* system t!an sales tax *ax evasion *ransparency 'mproved Exports +overnment Profits 7aterial Cost Extraction 7et!od Principal Component Analysis. 9otation 7et!od #arimax 1it! @aiser =ormali.ation. a 9otation conver)ed in ; iterations. From t!e a(ove ta(le t!e first factor consists of > varia(le 1it! varia(le loadin)s 't sets smoot! approac! for t!e 1!olesalers and 9etailers /.;3;0 *!e total collection of tax reven$e to t!e )overnment increased rapidly /.?1>0 't is more s$ita(le for t!e )lo(alised economic sit$ations /.?0?0. 't c$rtails sales tax at different sta)es /.>6;0. 't )ives m$t$al (enefits to t!e c$stomers and )overnment /.>630. 'nflation increases d$e to #A* implementation pro)rammes / .E??0 and more diffic$lties are fo$nd in t!e instr$ction of #A* system t!an sales tax /.E:?0. *!erefore t!is factor is 8no1n as DVAT OUTCOMESE. #A* implementation improves t!e reven$e )ro1t! /.>?30 #A* implementation increases t!e confidence of t!e c$stomers on t!eir tax aspects /.>E3 0 't red$ces t!e material cost / .6;>0 Comparin) #A* system 1it! erst1!ile sales tax )ives more favora(le response to1ards #A* / .E?>0. *!erefore t!is Co+,o/e/1 % ' . ;3; . ?1> . ?0? . >6; . >63 . E?? . E:? .>?3 .>E3 .6;> .E?> .?6: .?:3 .?;0 .??1 (

factor is 8no1n as DVAT BENEFITSD. #A* implementation c!ec8s t!e tax evasion periodically /.?6:0 *ransparency is prevailin) in t!e #A* implementation process / .?:30. *!erefore t!is factor is 8no1n as DVAT REAL PROCESSE. #A* improved exports /.?;00 't increases )overnment profits /.??10. *!erefore t!is factor is 8no1n as DVAT FEATURESE.

17

$5. CONCLUSION
#A* o$t comes and #A* (enefits are analo)s to eac! ot!er. *!e #A* real process and its implementation are a(le to ascertained t!e exact #A* feat$re. *!e #A* implementation )ives t!e maxim$m (enefits to t!e c$stomers and its feat$res are tendin) to1ards (enefits for t!e sellers and c$stomers.

$;. CLUSTER ANALYSIS

*!ere exist 3 cl$sters in t!e sample $nit t!e first cl$ster as stron) perceptions a(o$t #A* and its implication% so t!is cl$ster is called DDy/*+.2 C-7"1e E. *!e t!ird cl$ster moderately ascertained t!e implementation of #A* its conse4$ences in t!e mar8et. So t!ere are called DMe!.27-o7" C-7"1e E. *!e t!ird )ro$p of cl$ster is very 1ee8 in t!e notaions re)ardin) #A*. So t!is is 8no1n as DU/*+>.1.o7" C-7"1e E. C-*"".3.2*1.o/ o3 e",o/!e/1" >*"e! o/ ,e 2e,1.o/" o3 VAT */! o,./.o/ o/ I+,-e+e/1*1.o/ o3 VAT *!e 9esearc! o(tain :0; respondents from *amil =ad$ and @arnata8a t!e respondents clearly expressed t!e opinion on #A* in li8ert s E point scale. *!ere perceptional differences are identified t!ro$)! 8&means cl$ster analysis. 't identifies !etero)eneity of respondent (ased on t!e scores of li8ert s E point scale. *!e follo1in) ta(le presents t!e opinion of respondents (ased on t!e factors. 1. 2. 3. 4. #A* -$tcomes #A* 5enefits #A* 9eal Process #A* Feat$res.

18

TABLE No.8 F./*- C-7"1e Ce/1e " 3o VAT .+,-e+e/1*1.o/

$ :.31 3.3? 3.>1 :.1; :.36 3.E3 3.:> :.01 3.;3 3.;: 3.>0 3.3? :.6? :.E0 3.3> C-7"1 e % 3.31 1.;> 3.3: 3.3> 3.:> 3.;3 3.3; :.3: 3.33 3.6? 3.;3 3.30 :.E; :.31 3.;E ' 3.:> 3.01 3.;: 3.6: 3.:1 3.3; 3.3; 3.36 3.6; 3.>E 3.?; 3.01 :.E3 :.3; 3.?E

*ax Evasion *ransparency 'mproved Exports +overnment Profits 7aterial Cost 9esponse to1ards #A* Diffic$lties are fo$nd in t!e instr$ction of #A* system t!an sales tax 'nflation 9even$e +ro1t! *ax aspects Sales tax 5enefits to t!e c$stomers and )overnment Approac! for t!e 1!olesalers and retailers *ax reven$e to t!e )overnment increased rapidly Economic sit$ations.

TABLE #$: N7+>e o3 C*"e" ./ e*2h C-7"1e

Cl$ster 1 3 3 33:.000 E>.31I E;.000 1:.:3I 116.000 3?.36I :0;.000

#alid

*!e a(ove ta(le it is fo$nd t!at t!e sample $nit is classified into 3 !etero)eneo$s )ro$ps 1it! fre4$ency amon) t!e t!ree )ro$ps t!e First )ro$p Stron) in #A* -U*C-7ES and #A* 5E=EF'*S. *!erefore t!is cl$ster is 8no1n as BU/*+>.07o7" C-7"1e C (4;.%$F). ,!ereas t!e Second Cl$ster is ,ea8 in #A* -U*C-7ES. So t!e Cl$ster is 8no1n as B Me!.27-o7" C-7"1e E ($(.(%F). 5$t t!e *!ird Cl$ster is Stron) in #A* FEA*U9ES. *!erefore t!is )ro$p is 8no1n as DDy/*+.2 C-7"1e C (%?.'5F). -n t!e 1!ole it is concl$ded t!at aro$nd E0I of respondents are a(le to reali.e t!e implementation of #A* on t!ere ($siness esta(lis!ment. 't is also identified t!at t!e remainin) E0I are not f$lly a1are of #A* and its 'mplementation. *!ey are $na1are of #A* effectiveness% $nent!$siastic and do not !ave clarity over #A* proced$re.

19

$?. C-*"".3.2*1.o/ o3 Re",o/!e/1" >*"e! o/ Pe 2e,1.o/" o3 VAT */!S700e"1.o/" 1o I/2 e*"e 1he E33e21.<e/e"" I+,-e+e/1*1.o/ o3 VAT
*!e 9esearc! o(tain :0; respondents from *amil =ad$ and @arnata8a t!e respondents clearly expressed t!e opinion on #A* in li8ert s E point scale. *!ere perceptional differences are identified t!ro$)! 8&means cl$ster analysis. 't identifies !etero)eneity of respondent (ased on t!e scores of li8ert s E point scale. *!e follo1in) ta(le presents t!e opinion of respondents (ased on t!e factors. Prod$ct Classification *ax Credit Practical Approac! Sin)le ,indo1 Assessment *!ere exist 3 cl$sters in t!e sample $nit t!e first cl$ster as stron) perceptions a(o$t #A* and its implication% so t!is cl$ster is called BUniformity Cl$sterC. *!e second cl$ster moderately ascertained t!e implementation of #A* its conse4$ences in t!e mar8et. So t!ere are called B=eed to (e 'mprovedC. *!e t!ird )ro$p of cl$ster is very 1ee8 in t!e notaions re)ardin) #A*. So t!is is 8no1n as BAdopta(le Cl$sterC 1. 2. 3. 4.

TABLE #$$ F./*- C-7"1e Ce/1e " 3o S700e"1.o/" 3o E33e21.<e I+,-e+e1*.o/ o3 VAT
C-7"1 e

$ 'ntrod$ction of $niform classificatio prod$ct n across t!e co$ntry o Extension f inp$t tax centr credit to al sales taxes also Adoption of a practical approac! to #A* a$dits for assessment o sin)l 'ntrod$ction f e 1indo1 assessment process for all taxes. 3.;1

% 3.0>

' 3.3;

:.31 :.1:

3.>3 3.3E

:.3> 3.E3

3.?;

3.33

3.03

TABLE #$% N7+>e o3 C*"e" ./ e*2h C-7"1e

Cl$ster 1 3 3 #ali 3:3.000 103.000 6:.000 :0;.000 E;.:1I 3:.;3I 1E.6:I

d *!e a(ove ta(le it is fo$nd t!at t!e sample $nit is classified into 3 !etero)eneo$s )ro$ps 1it! fre4$ency amon) t!e t!ree )ro$ps t!e First )ro$p Stron) 20

in *ax Credit and Practical Approac! 5$t moderate in Prod$ct Classification and Sin)le ,indo1 Assessment. *!erefore t!is cl$ster is 8no1n as B U/.3o +.1y C-7"1e E(48.($F). ,!ereas t!e Second Cl$ster is ,ea8 in *ax Credit.

7oderate in prod$ct classification% practical approac! and sin)le 1indo1 assessment. So t!e Cl$ster is 8no1n as B Nee! 1o >e I+, o<e!E(%(.8'F). 5$t t!e *!ird Cl$ster is Stron) in tax credit of #A*. 5$t 1ea8 in Prod$ct Classification. *!erefore t!is )ro$p is 8no1n as DA!o,1*>-e C-7"1e E($4.5(F). -n t!e 1!ole it is concl$ded t!at aro$nd E;I of respondents are very m$c! effective implementation of #A* and its total o$tp$t remainin) 3EI are not need to (e improved as 1ell as adopta(le cl$ster 1E.6:I to possess t!e a1areness of #A*.

$8. ANOVA
*!e six areas of improvement of taxes are 9ate of tax% Classification of ind$strial inp$ts% Compliance Proced$re% 9ef$nd 9e)istration% 9e)istration process and 7aintainin) and improvin) Acco$ntin) proced$res are considered as independent varia(le and #A* implementation and s$))estion as dependent varia(les.

%:. Re-*1.o/"h., >e1wee/ * e*" o3 I+, o<e+e/1 */! VAT I+,-e+e/1*1.o/ */! S700e"1.o/"
*!e six areas of improvement are 9ate of tax% Classification of 'nd$strial 'np$ts% Compliance Proced$re% 9ef$nd Proced$res% 9e)istration Proced$re and 7aintainin) and 'mprovin) Acco$ntin) Proced$res are considered as 'ndependent varia(les and opinion of #A* implementation and S$))estions for effective implementation of #A* as dependent varia(les. TABLE# $' ANOVA 1*>-e 3o o,./.o/ o3 VAT I+,-e+e/1*1.o/, A e*" o3 I+, o<e+e/1 */! S700e"1.o/" 3o E33e21.<e I+,-e+e/1*1.o/ o3 VAT S S u q S mu q a Mu S e a i o r d a r g f e s f n e F .

*ax Evasion

5et1een +ro$ps ,it!in +ro$ps >.>30 :13.61 0 :31.33 0 :.13? 36>.66 3 : :0: :0? : :0: 1.03: . ;10 1.;30 1.03:

1.?? E

.113

*ransparency

*otal 5et1een +ro$ps ,it!in +ro$ps

1.13 >

.33;

'mproved Exports

*otal 5et1een +ro$ps ,it!in +ro$ps *otal

3>1.?0 0 33.EE3 3>:.33 ; 3;6.>? 3 :.:;?

:0? : :0: :0? : 1.13E 1.3: 0 .3;3 E.63? . ;36 6.0? > .000

+overnment profits

5et1een +ro$ps

21
S S u q mu a o r f e s M e a n S q u a r e S i g .

d f

,it!in +ro$ps 7aterial cost *otal 5et1een +ro$ps ,it!in +ro$ps *otal 9esponse to1ards
#A*

366.3; 1 3>0.?; 0 3.0>0 313.31 1 31E.3? 1 6.3>E 3?;.6> : 3;6.0: ;

:0: :0? : :0: :0? : :0: :0?

. ;0> . E1? . >>E

.66?

.61E

5et1een +ro$ps ,it!in +ro$ps *otal

1.E;: . ;6E

1.6E 3

.160

Diffic$lties are fo$nd in t!e instr$ction of #A* system t!an sales tax

5et1een +ro$ps ,it!in +ro$ps *otal

:.333 :1:.:0 ? :1?.6:

1.0E?

1.03 3

.3;1

:0: :0?

1.036

1 'nflation 5et1een +ro$ps ,it!in +ro$ps 9even$e )ro1t! *otal 5et1een +ro$ps ,it!in +ro$ps *ax aspects *otal 5et1een +ro$ps ,it!in +ro$ps Sales tax *otal 5et1een +ro$ps ,it!in +ro$ps *otal 5enefits to t!e c$stomers and )overnment 5et1een +ro$ps ,it!in +ro$ps Approac! for t!e 1!olesalers and retailers *otal 5et1een +ro$ps ,it!in +ro$ps *otal *ax reven$e to t!e )overnment increased rapidly 5et1een +ro$ps 1.:?3 : . 3>1 .;?? .:1: >.30; 3>E.3E 3 3?3.E6 3 .61: 101.?? : 103.:; ; : 1.?03 . ;3; 1.E:> 311.?: 1 313.3? ; 3.?E3 3:>.:E : 3E1.30 6 1.636 3?:.>6 E 3?6.:0 1 3.1:0 3?E.10 ; 3??.3: ; : :0: :0? : :0: :0? : :0: :0? : :0: :0? 1.;: 0 .103 . >?E . ;E3 .?33 .E11 . :0; . ;E3 .:30 .>?> . ;63 . ?60 1.13 0 .3:> . 3?> . >>3 .E01 .>3E

:0: :0? : :0: :0?

. 1E: . 3E3

.60;

.6E6

22
S S u q mu a o r f e s M e a n S q u a r e S i g .

d f

,it!in +ro$ps Economic sit$ations *otal 5et1een +ro$ps ,it!in +ro$ps Uniform prod$ct classification *otal 5et1een +ro$ps ,it!in +ro$ps 'np$t tax credit *otal 5et1een +ro$ps ,it!in +ro$ps practical approac! to #A* *otal 5et1een +ro$ps ,it!in +ro$ps Sin)le 1indo1 *otal 5et1een

1E1.6? 6 1E3.16 ; 1.110 33:.33 ; 33E.3E 0 3.3E? 31?.33 6 331.E? : .:;3 30?.10 ; 30?.60 1 .;?0 3;3.31 E 3;3.3; 6

:0: :0? :

. 3> E . 3> ? . ?0 3 . ?1 : . >? ? . 13 3 . >6 3 . 3: E . >3 :

.3:6

.?:>

:0: :0? :

1.03 :

.3;0

:0: :0? :

.161

.;E?

:0: :0? :

.33;

.?E3

:0: :0?

assessment process for all taxes

+ro$ps .60E :

. 1E 1 . >0 3

.31E

.;30

,it!in +ro$ps *otal

3?:.30 > 3?:.?1 3

:0: :0?

From t!e a(ove ta(le it is fo$nd t!at t!e respondents differ in opinion a(o$t #A* 'mproved Exports /FL6.0?>0 /pL.0000 differ si)nificantly at EI level. *!is implies t!e respondents are not of t!e opinion t!at #A* implementation as incidental impact over exports. 'n ot!er opinion t!e respondents do not differ in t!e notions of #A* 'mplementation.

23

)tate

-;2.26 7 -;2.609

<ocation

-;2.430
)tat#s of b#siness 'ge of the :#siness

-;1.74 4

-;1.205
7d#cational =#alficiation

-;1.027
Ind#str$

-;0.733
7x"erience in the field 'warness

-; 7.821 -; 0.822 -; 1.234 -; 1.942

>now abo#t &'( 'nn#al (#rno2er

&'( I "le entation

-; 0.751 -; 1.308

P#blicit$ ('? ,ates

($"e of 5#sto er

-;2.46

I "lications

-; 2.385

&'( ,ates

-; 1.356 -; 0.859

VAT IM(%EMENTATION
1. VAT OUTCOMES

-illing onthl$ ,et#rn

70filling

-; 1.157

2. VAT $ENEFITS 3. VAT REA% (ROCESS 4. VAT FEATURES

,elaxation @ consession
5o "#ter A Internet 5onnection

-; 2.810 -; 1.938

SU44ESTIONS FOR EFFECTIVE IM(%EMENTATION OF VAT 24 1. P,B9%5( 5<'))I-I5'(IB. 2. ('? 5,79I( 3. P,'5(I5'< 'PP,B'5C 4. )I.8<7 6I.9B6 '))7))*7.(

%$. N7+>e o3 A""e""e"

*amil =ad$ #al$e Added *ax Act 3006 !as not defined t!e 1ord assessee% ($t it can (e defined as any person (y 1!om tax or any ot!er s$m of money is paya(le $nder t!is Act.

TABLE No.$: NUMBER OF ASSESSEES

VARIABLES 1>;>1: 30E31; 3?E033 1;3E16.E 1?10E.:> ;.:0:6 1>;>1: 1>;>1:

300> 300? SU7 A#E9A+E S*D DE# SU7 *9E=D +9-,*G

YEARS K 300? & 300;

PERCENTA) E :0I :1I

SOURCE # Co++e 2.*- T*= De,* 1+e/1

*!e =$m(er of Assesses in t!e year 300>&300? and 300?&300; revealed t!at t!e avera)e is 1;3E16.E la8!s. *!e *rend and +ro1t! is s!o1ed constant in t!e year of 300>&300? and 300?&300;. Standard Deviation emp!asi.ed its consistency in t!e constant increase of n$m(er of assesses.

%%. N7+>e o3 No/A*""e""e"

=on KAssessees are not lia(le to pay tax $nder t!e Act ($t t!ey are re)istered dealers $nder t!e *amil =ad$ #al$e Added *ax Act 3006. Dealers means any person 1!o carries on ($siness of ($yin)% sellin)% s$pplyin) or distri($tin) )oods% directly or ot!er1ise% 1!et!er for cas! or for deferred payment% or for commission% rem$neration or ot!er val$a(le consideration. A 9e)istered Dealer is one 1!o re)istered as dealer $nder *amil =ad$ #al$e Added *ax Act 3006.

TABLE No.$% NUMBER OF NONAASSESSEES

YEARS K 300? & 300; VARIABLES 366E3> 3;13;6 EE>;33 3>?;66.E 1>E>>.;> 6.30110 366E3> 366E3> PERCENTA) E 60I E;I

300> 300? SU7 A#E9A+E S*D DE# SU7 *9E=D +9-,*G

SOURCE # Co++e 2.*- T*= De,* 1+e/1

*!e =$m(er of =on& Assesses in t!e year 300>&300? and 300?&300; revealed t!at t!e avera)e is 3>?;66.E la8!s. *!e *rend and +ro1t! is s!o1ed

25

Constant in t!e year of 300>&300? and 300?&300;. Standard Deviation emp!asi.ed its consistency in t!e constant increase of n$m(er of =on&Assesses.

S*-e" 1*= 7/!e TN)ST

Article 3:3 of t!e 'ndian constit$tion a$t!ori.e t!e le)islat$res of t!e states to ma8e la1s applica(le 1it!in t!eir F$risdiction in respect of matters in <ist '' of t!e sevent! sc!ed$le of t!e constit$tion. Sale and p$rc!ase transactions ori)inatin) and endin) 1it!in t!e territorial limits of any state !ave (een considered to (e a state s$(2ect. *!e state )overnment !ave (een )iven po1ers to impose taxes on s$c! transactions. Under *amil =ad$ )eneral sales tax act 1;E;% *amil =ad$ )overnment impose sin)le point tax on sale or p$rc!ase of )oods% 1it!in t!e state. A sin)le point tax is levied eit!er at t!e first sta)e or at t!e final sta)e. 'n ot!er 1ords sin)le point taxation means imposition of tax at only one point (et1een prod$ction and t!e sale of )oods. +enerally state le)islat$re enact taxin) la1s to meet t!eir financial needs. *amil =ad$ )overnment also enacted la1s 1ere enacted $nder t!e follo1in) !eads 1. +eneral Sales *ax Act 2. S$rc!ar)e Act 3. 9esale *ax Act 4. Additional *ax Act After introd$ction of #al$e added tax act% t!e a(ove tax la1s 1ere a(olis!ed.

TABLE # $' SALES TAX UNDER TN)ST

YEARS K 300? & 300; VARIABLES 301 3E; E60 3?0 3;.6;?:? 10.603E> 301 301 PERCENTA) E =il &13.;E3

300> 300? SU7 A#E9A+E S*D DE# SU7 *9E=D +9-,*G

SOURCE # Co++e 2.*- T*= De,* 1+e/1

*!e Sales tax $nder *=+S* in t!e year 300>&300? and 300?&300; revealed t!at t!e avera)e is 3?0 !$ndreds. *!e *rend and +ro1t! is s!o1ed Constant in t!e year of 300>&300? and 300?&300;. Standard Deviation emp!asi.ed its consistency in t!e constant increase of Sales ta x $nder *=+S*

%'. Ce/1 *- S*-e" T*=

*!e division of po1ers (et1een parliament and t!e state le)islat$res to le)islate la1s is defined (y article 3:E of t!e 'ndian constit$tion. *!e CS* act provides for levy on inter&state sales. Go1ever% t!e concept t!at reven$e form sales tax s!o$ld (e collected (y states !as (een retained. *!o$)! it is called central sales tax act% t!e tax collected $nder t!e act in eac! state is 8ept (y 26

t!at state only tax on inter& state sale is levied (y $nion )overnment. ,!ile tax on intra&state sale is levied (y t!e state )overnment of t!e state in 1!ic! sale ta8esplace. 't is provided $nder in o$r constit$tion t!at tax on inter state sale 1ill only (y la1 of parliament.

TABLE #$( CENTRAL SALES TAX

YEARS K 300? & 300; VARIABLES 1>:: 16E3 33;> 336:.66> 6:.3:6 3.?:13 1>:: 1>:: PERCENTA) E =il &E.31>

300> 300? SU7 A#E9A+E S*D DE# SU7 *9E=D +9-,*G

SOURCE # Co++e 2.*- T*= De,* 1+e/1

*!e Central Sales *ax in t!e year 300>&300? and 300?&300; revealed t!at t!e avera)e is 336:.66> t!o$sands. *!e *rend and +ro1t! is s!o1ed Constant in t!e year of 300>&300? and 300?&300;. Standard Deviation emp!asi.ed its consistency in t!e constant increase of Central Sales *ax.

FIN5IN4S D ($"e of c#sto er of the sa "le #nit co "rises 54E of 5hartered acco#ntant are high. )tate of the sa "le #nit co "rises 71.4E of (a il .ad#. D :#siness of the sa "le #nit co "rises 45.7E of )e i0%rban. 66.8E of the res"ondents belong to co "an$. D 46E of the res"ondents #nit co "rises 41 + 50 $ears are high. 54.5E of the ,es"ondents are Post08rad#ates. D 50.1E of the res"ondents ha2ing are 5e ent Ind#str$. 54.8E of the res"ondents ha2ing the 7x"erience 16020 $ears are high. D 62.6E of the res"ondents o"ined 'wareness abo#t &'( s$ste . 62.3E of the ,es"ondents o"ined >nowledge abo#t &'(. D 36.7E of the ,es"odents 'nn#al (#rno2er is 15!00!001020!00!000. 57.5E of the D ,es"ondents seen the 8o2ern ent @ 7 "owered 5o D 5a "aign. D ,elationshi" between areas of I "ro2e ent and &'( I "le entation and s#ggestions ,es"ondents are not o"inion that &'( I "le entation as incidental i "act o2er 7x"orts. In other o"inion the res"ondents do not differ in the notions of &'( I "le entation. D (he t$"e of 5#sto er! )tate! <ocation! )tat#s of the b#siness! 'ge of b#siness! 7d#cational 3#alification! Ind#str$! 7x"erience in the field! 'wareness! >now abo#t &'(! 'nn#al t#rno2er! P#blicit$! I "lications of &'( Introd#ction! &'( I "le entation s$ste ! (ax ,ates! &'( ,ates! -illing *onthl$ ,et#rn! 70filling! ,elaxation@concessions! 5o "#ter and Internet 5onnecti2it$ are essential to #nderstand to i "le ent of &'( s$ste for effecti2e I "le entation of &'( and s#ggestions ittees P#blicit$

D 27

D .# ber of 'ssesses for (a il .ad# (rend and 8rowth is showed constant in the $ear of 200702008 and 200802009. .# ber of .on0'ssesses for (a il .ad# standard de2iation e "hasiFed its consistenc$ in the constant increase in the $ear of 200702008 and 200802009. D (he )ales (ax #nder (.8)( in the $ear 200702008 and 200802009 re2ealed that the a2erage is 280 5rores for (a il .ad#. 5entral )ales (ax for (a il .ad# the (rend and 8rowth is showed 5onstant in the $ear of 200702008 and 200802009. D (he &'( ,e2en#e in the $ear 200702008 and 200802009 re2ealed that the a2erage is 278966.5 5rores. In the $ear 200702008 the (ax )lab 6ise 'ssesses re2ealed that 012.827E is decreased in the "artic#lar range fro D In the $ear 200802009 distrib#tion of assesses b$ t#rno2er and tax slab /,s.1000200 crores1 is 200E which is decreased in the "artic#lar range fro ,s.105 la4hs it is also fo#nd that a cons"ic#o#s increase is noticed in the $ear 200802009 in the slab ,s.10050 la4hs and abo2e is 666.666E on the '2erage in the $ear 200802009 is 15.636 crores ha2e been obtained as &'(. It is also fo#nd a oderate 2ariation is fo#nd in the slab ,s.10000050000 is 300E. ' oderate 2ariation is fo#nd in the slab ,s.1010 5rores is 350E for 9istrib#tion of assesses b$ t#rno2er and tax slabs in 200802009 /,s.2000 300 crores1. D In the $ear 200702008 distrib#tion of tax re2en#e b$ t#rno2er and tax slab /,s.3000400 crores1 is 222.846E which is decreased in the "artic#lar range fro is 4989.508E. It is also fo#nd a 178.598E /,s.4000500 crores1. D Bn the '2erage in the $ear 200702008 is 203036.833 crores ha2e been obtained as &'( /,s. 500 and abo2e1. D (he 5( ,e2en#e and .et )tate 9o estic Prod#ct /.)9P1 in the $ear 200702008 and 20080 2009 re2ealed that the a2erage is 21261.5 tho#sands. D ,s.500100 la4hs it is also fo#nd that a cons"ic#o#s increase is noticed in the $ear 200702008 in the slab ,s.1010 crores oderate 2ariation is fo#nd in the slab ,s.20030 crores is ,s.5!000010!000 it is also fo#nd that a cons"ic#o#s increase is noticed in the $ear 200702008 in the )lab ,s.50 crs and abo2e is 271.428E.

(he own tax re2en#e of (a il .ad# in the $ear 200702008 and 200802009 re2ealed that the a2erage is 33826.5 tho#sands. D .)9P at c#rrent "rices of (a il .ad# in the $ear 2007 02008 and 200802009 re2ealed that the a2erage is 271230.5 la4hs. D )tatewise sales tax and states own tax re2en#e of (a il .ad# in the $ear 2007+ D 2008 and 200802009 re2ealed that the a2erage is 17991 tho#sands. D 5entral sales tax of (a il .ad# in the $ear 2007 02008 and 200802009 re2ealed that the a2erage is 1698.5 tho#sands. D -or >arnata4a )tandard 9e2iation e "hasiFed its consistenc$ in the constant increase of n# ber of assesses. D (he .# ber of non0'ssesses in the $ear of >arnata4a is fro re2ealed that the a2erage is 297135.3 la4hs. D )ales tax in the $ear of >arnata4a is fro is 335.333 5rores. D (he 5entral )ales tax of >arnata4a is fro is 1573 tho#sand. D (he re2en#e of >arnata4a in the $ear fro is 16416 tho#sand. 200602007 to 200802009 re2ealed that the a2erage 200602007 to 200802009 re2ealed that the a2erage 200602007 to 200802009 re2ealed that the a2erage 200602007 to 200802009

SU44SETIONS 1. )ince the 5ons# ers and ,etailers are %naware of certain I "le entation "rocess of &al#e added tax. It is s#ggested the go2ern ent sho#ld co e with trans"arent nor s to enlighten the retailers and cons# ers. 2. (he st#d$ ascertained axi # benefit to the go2ern ent thro#gh &al#e 'dded (ax ended to ha2e inno2ati2e slab s$ste s#itable for

s$ste . )o it is strongl$ reco

6holesalers! ,etailers and 5ons# ers. 3. -actor 'nal$sis re2ealed the I "le entation of &al#e 'dded (ax is "redo inant a ong the ,etailers as well as 5ons# ers. ' se"arate s$ste i "le ented for the #t#al benefit of "#rchasers and sellers. #st be transisl$

4. &'( feat#res are highl$ co "etent to allot benefit to the go2ern ent. )o the channel of distrib#tion and flow of &'( #st be refor ed.

5. ' trans"arent a""roach ,ate of (ax! ,ef#nd Proced#re! *aintaining and i "ro2ing acco#nting "roced#re are the i 6. It is strongl$ reco "eriodicall$ to ediate need for an ho#r.

ended that the tax cons#ltant and the go2ern ent sho#ld

onitor the "roced#re.

CONC%USION (he &al#e 'dded (ax a4es an e2asi2e atte "t on I "le entation le2el as well as

exec#tion le2el. (he st#d$ re2ealed the re3#ire ent of trans"arenc$ in &'( in all the states of India. It is fo#nd that e3#al channel of distrib#tion of &'( is fo#nd a ong 6holesalers! ,etailers and 5ons# ers. (he tax a""licabilit$ and e0filing "la$s a 2ital role in the &'( s$ste . It gi2es #t#al benefits to the 5ons# ers and 8o2ern ent. )er2ice tax! sales tax and in all the other taxes can be easil$ 2i2id d#e to its I "le entation "rocess. :#t the trans"arenc$ is re3#ired at all the le2el in order to obtain effecti2e f#nctioning in the &'( s$ste states of India. (he introd#ction of %nifor Prod#ct 5lassification across the co#ntr$ is and 'bolition of 5)( are

re3#ired to exhibit the I "le entation "rocess with effecti2e ret#rn. (he ado"tion benefits of "#rchasers and sellers e3#all$. (he single window s$ste indis"ensable to obtain the cent "ercent s#ccess of &'(.

Reference1 $OO6S D 5hittora :.>. /20051! &'( /&'<%7 '9979 ('?1! *ar4 P#blishers Gai"#r /I.9I'1. D >#l :h#shan /20051! Cow to deal with &'( + /-irst Indian Print 20051! Pearson 7d#cation /)inga"ore1 Pte. <td. D <ect#res on 2al#e added tax act A 5)( act 2008! &.)#biah .aid#! )itara an A 5o.! P2t.<td (.5(G) the ta ilnad# 2al#e added tax act! 2006! (a il .ad# act D D 9r. Para eswaran /20051! Princi"les of taxation /,e2ised 7dition 20051 +! Prasanna "#blishers! 5hennai. D ,aHa G.5helliah! Pawan >.'ggarwal /20011! *ahesh 5.P#rohit and ,.>a2ita ,ao! Pri er on 2al#e added tax /20011 +.ational Instit#te of P#blic -inance and Polic$! C', + 'nand P#blications P2t <td.! .ew 9elhi. D ,a2eendran :. /20061! (a il .ad# &'( 'ct! 2006! 5.)itara an and 5o. )o#rce co (.&'( 'ct 2006 and central sales tax 'ct 1956 D 1956! (he <aws Interce"tion! Ins"ection! )earch )eiF#re and 5onfiscation #nder &'( ,egi e in India! *.,.&. ,ao and *.). ,a an. D )E$SITES D -inance.india art.co @taxation@2al#le0added0tax.ht l D en.wi4i"edia.org@wi4i@tal4 I 2al#e + added + tax D :#siness.go2.in@taxation@2at."h" D www.tn2at.go2.in@7nglish@downfor .ht D J72al#ation of &al#e 'dded (ax in IndiaK! 9r.).>.>hati4! eHo#rnal dr.co entar$ on