What is VAT system?

I need to know the import of VAT and it's merits and demerits?

Answers:
VAT refers for Value added tariff. It is a structure of indirect due.
VAT should be compensated by marketer and concerned agent it eligible to receive credit of excise compensated by previous vendor.
MERITS: There is no extent for evasion.
For taking credit , a vendor required invoice of purchase
DEMERITS:Dealer required to profess up to date books of accounts & File return surrounded by time
It's grim!


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