Vat Road to Gst

Project Report on Contemporary issues

VAT: Road to GST

Course Code: MGT 727

Submitted by:

Varun Puri

Reg. No. 10800464

RR1805 A 19

Submitted to:

Anand Thakur

DEPARTMENT OF MANAGEMENT

LOVELY PROFESSIONAL UNIVERSITY

PHAGWARA

(2010)

DECLARATION

I, "Varun Puri”, hereby declare that the work presented herein is genuine work done originally by me and has not been published or submitted elsewhere. Any literature, data or works done by others and cited within this report has been given due acknowledgement and listed in the reference section.

_______________________

(Varun Puri)

_______________________

(Registration No.)

Date:__________________

Contents

Executive Summary 1

Review of Literature 2

Need, Scope & Objective of Study 4

Value Added Tax 5

History 5

VAT in India 6

Registration for VAT:- 10

Declaration & Payment of Tax 11

Comparison of VAT and Sales tax 12

Advantages of application of VAT 12

VAT & its Effects 15

Goods & Services Tax Model for India 18

Salient features of the GST model 19

Taxes subsumed by GST 21

GST’s benefit to the small entrepreneurs and small traders 23

Conclusion 24

References………..………………………………………………………………………………25

Executive Summary

Chanakya’s economic wisdom of granting states the right to tax its people just as a shepherd shears his flock or as a bee gets nectar from the flower we have died with him. The modern Indian state taxes its people just like the French use the flower for extracting perfume – in such a way that by the time they are through, nothing much of the flower remains. Over the years, this suffocating system of taxation has spawned a black economy that is by many estimates half as big as the white counterpart. Moreover the revenue collection system of the states was a totally corrupt one and many efforts since the economy actually liberalized itself have brought only limited results with lot more...