CURRENT AFFAIRS

Detailed explanation-1: -Goods such as liquor, cigarettes, etc. are charged with high VAT rates of 12.5% or 14-15%. There are a lot of state governments that follow a general rate of VAT for goods that cannot be categorized to the above list of classifications. Goods like that are taxed at 12%, 13%, or even 15% in various states.

Detailed explanation-2: -Any person earning an annual turnover of more than Rs. 5 lakh by supplying goods and services is liable to register for VAT payment. Value-added tax or VAT is levied both on local as well as imported goods.

Detailed explanation-3: -Value Added Tax (VAT) is a major source of revenue for all Indian states and union territories (except Andaman and Nicobar Islands and Lakshadweep). VAT was introduced as an indirect tax in the Indian taxation system to replace the existing general sales tax.

Detailed explanation-4: -A value added tax (VAT) is a consumption tax added to a product’s sales price. It represents a tax on the “value added” to the product throughout its production process. In our daily life, we buy many kinds of good from the market where the shopkeeper buys either from the wholesalers or directly from the manufacturers.