This presentation summarizes the key aspects of value-added tax (VAT) in India. It introduces VAT and explains how it differs from other sales tax systems by being levied at multiple points of a product's production and distribution chain. The presentation outlines the history of taxation systems in India, the reasons for changing to VAT, how VAT affects the Indian economy, and compares the advantages and disadvantages of VAT to other systems. Real-world examples of calculating VAT are provided.

1. WelcomeTo The Presentation OfV .A. T.Dt: 30/12/2009Presented by:Sachin Ghulyani B-12Gopi Gosai B-13Hiral Panchal B-32Amit Gurav B-14Presented to:Dr. H. Rathod

2. SummaryWhat is VAT

3. History

4. Why a change in TAX system

5. How does VAT affect India.

6. Advantages and disadvantages of VAT

7. ConclusionDay to Day example of VATV.A.T @ 12.5% (Rs.1750)Rs.15750Nokia 5800 Rs.14000

8. What is VAT???

9. Value Added Tax is a multi point sales tax with set off for tax paid on purchases.It is basically a tax on the value addition on the product.

10. TAX is the money that people have to pay the government, which is used to provide public services.

11. And also the money collected has become an instrument of fiscal policy to stimulate economic growth and to maintain economic stability in the countryHistory in India

12. WHY - A - NEW - TAX - SYSTEM?There are seven significant reasons to reform the tax system

13. 7 ReasonsThe current system was too complex2. It got too easily exploited by political reasons

14. 7 ReasonsIt created a poor economic impact4.It was a bureaucracy Out of control

15. 7 Reasons5. VAT requires a large number of professionals6. VAT forces business managers to make decisions based on taximplications rather than good business

16. 7 Reasons7. It was inefficient

17. How do Sales Tax and VAT differ???

18. GoodsUnder VAT

19. Calculation of VAT

20. How does it Affect India.In the above diagram.Deadweight loss: the area of the triangle formed by the tax income box, the original supply curve, and the demand curve

21. Governments tax income: the grey rectangle that says "tax”

22. Total consumer surplus after the shift: the green area

23. Total producer surplus after the shift: the yellow areaTHE ULTIMATE EFFECTRs. 85,000,00,00,000Eighty Five Thousand Crore Rupees.

24. Advantages of V.A.TEasy to Administer and Transparent.2. No Cascading Effect.3. Minimum Exemptions.

25. Dis-Advantages of V.A.TDetailed Records.Causes Inflation.Increase in Investment.

26. The Final Word!!

27. …Questions…

28. Presented by:Sachin GhulyaniGopi GosaiHiral PanchalAmit Gurav