The objective for introducing VAT are-
- To avail credit on inputs leading to cost efficiency.
- Ensure equitable distribution of tax impact among st dealers.
- Easy compliance through transparent and easy procedures exist under it and only two rates are there.
- Easy computation of tax.
- Avoids double taxation through input rebate.
- Prevents distortions in trade and economy through uniform tax rates.
- Calculation Easy and Simple
- Transparency
- Increased Tax Base
- Competitive Price
- Uniform Tax Structure
- More Revenue
- NO Revenue Leakage
- Avoids Double Taxation
- Co-ordination of VAT with direct taxation
