The introduction of Value Added Tax in India in the year 2005 can be stated as an important landmark in the tax system of India. In India, VAT has been imposed at a rate of 12.5%. VAT is a kind of indirect tax. This tax is normally collected by the shop-owners and the tax revenue ultimately adds to the government's earnings.
More about VAT rules in India
There are several rules that regulate the process of imposition and collection of value added tax in India. Some of these are as follows:
Registration
Power of Circle-in-Charge
Evidence
Collection of Advance Tax
Tribunal
Reverse Credit
Payment of Tax
Input Tax Credit
Intra-State Stock Transfer
Deduction of Tax at Source
Return and Scrutiny
Refund of Tax
Audit and Assessment
Taxable Turnover
Appeal and Revision
Payment of Tax, Interest and Penalty
Special Mode of Recovery
Declaration of Open Stocks
Issuance of Tax Clearance Certificate
Domains of the VAT Rules in India
VAT rule of Registration deals with dealer registration, issuance of duplicate certificate for permanent registration, cancellation and modification of the existing registration certificate and security that the dealer is required to furnish.
VAT rule dealing with Reverse Credit mainly takes into account the situations arising out of reverse credit for the manufacturing and non-manufacturing dealers. The cases of revised reverse credit and total reverse credit also come under the purview of VAT rule of Reverse Credit.
All dealers who are entitled to pay the value added tax at a specified rate come under section 15. The section 15 fixed rate of VAT is functional in exchange of tax payable by the trader.