KVAT Consultant in Cochin, Kerala
Obtaining Registration under KVAT/CST/Works contract
Filing KVAT/CST/Works contract Monthly/quarterly/Annual returns
Obtaining liability certificate(WCT)
Obtaining certificate for non-deduction/collection of tax in WCT
Issues of Check-post detention of goods
Solving issues with intelligence wing of Commercial Tax Dept
Appeals upto tribunal
Regular opinion and consultation
Sales Tax assessment
VAT in Kerala
VAT a modern method of imposing tax on sale or purchase of commodities and services have been successfully experimented by more than 130 countries in the World. The common belief is that France was the first country in the world to have adopted VAT system in 1954. A minority, consider Brazil to be first nation to have introduced VAT in 1960. In India, change over to VAT system suggested by Dr. Man Mohan Singh while he was the union finance minister in the annual budget during 1993-94. Our neighbors China, Pakistan and Srilanka implemented VAT long back.
National Institute of Public Finance and Policy (NIPFP), New Delhi conducted studies on the system of VAT to be implemented in the country. An Empowered Committee consisting of the Finance Ministers of various states was formed to formulate the modalities of VAT in India. This committee chaired by Dr. Asim Das Gupta, Finance Minister of West Bengal came out with a white paper on the VAT in India, on January 17th 2005. The white paper detailed the general principles of VAT to be followed in the country. In India VAT would not be made applicable on services rendered and received. In tune with the guidelines of the empowered committee majority of the states including Kerala have enacted the VAT legislation suited for the respective states. Hariyana was the first Indian state to have implemented VAT. Reports indicate that Hariyana recorded a hike to the tune of 30% tax collection during the past 3 years.
There are three different methods for imposing VAT
(a) Subtraction Method
In this method for calculating VAT, the expenses incurred for the manufacture and marketing of a commodity would be subtracted from the end price of the commodity.
(b) Addition Method
In this method for calculating VAT, the expenses incurred for the manufacture and marketing of a commodity would be added on. In calculating VAT, under this method expenses like wages, interest, rent and profit would taken into account.
(c) Input Tax Credit Method
It is an amended format of the Subtraction Method. This method has been followed by most of the countries in the world. In India, Input Tax Credit Method is to be followed for implementing VAT.
This is because of the fact that Input Tax Credit Method is the best and the most, easy method in calculating VAT.