VAT means value added Tax.
The Govt of TamilNadu General sales Tax ACT (TNGST).Is to be replaced by Tamilnadu value added sales Tax.
VALUE RATES
1% for gold, silver, precious and semi precious stones.
4% for goods of basic necessities, industrial and agricultural inputs like beedi, fibres, seeds, steels medicine and drugs, textiles and sugar ,capital goods.
12.5% RNRC (Revenue Neutral Rate) on other goods. Like industrial and agriculture spars and tools(hammer,front check ,bit)
The petroleum products and cigarettes will also be taxed at higher rate of 20%
0% Tax on natural and unprocessed produces in unorganized sector, goods of social importance like slates, pencils, educational books etc…, rice, newspaper, national flags etc….
PAYMENT OF VAT
FILING OF RETURN:-
Tax payable under vat acts. Shall be deposited into a Government treasury or a bank.
DIFFERENT BETWEEN TNGST AND VAT:
TNGST VAT
A computer manufacturer ‘AA’ sells
his Computer to whole saler ‘BB’ at sale value 20,000
TNGST 4%=800/- [BB payed 4% Tax]
‘BB’ sells at a value of Rs 25,000 to a
retailer ‘CC’
TNGST 4%=1000
Net tax paid from ‘BB’ Rs.1800.00 A computer manufacturer ‘AA’ sells his
computer to whole saler ‘BB’ at
Sale value 20,000.
VAT 4%=800/-Rs [BB payed 4% Tax]
‘BB’ sells at a value of Rs 25,000 to a
retailer ‘CC’
VAT 4%=1000 Rs
Net Tax =output tax-input tax
1000-800=200
Here bb is going to pay only Rs 200 as tax.
Because he is already paid Rs.800.
So from the BB’S Point of view net tax only:1000
