SALIENT FEATURES OF VALUE ADDED TAX SYSTEM IN VOGUE

From 01.04.2006 the Value Added Tax System (VAT) has been implemented in the State in place of old Sales Tax System. VAT is a multipoint tax system, where tax is levied on every point of sale on the addition of value in course of every point of sale, till it goes to the consumer.

1. For the Dealer, who deals in the commodities purchased within the State - 5 Lakh
2. The dealer who imports commodities from outside the state -NIL
3. For manufacturers - 2 Lakh
4. For work contractors - 25 thousand.