*Ph.D Scholar, School of Commerce, Bharathiar University, Coimbatore, India
**Assistant Professor, Department of Management Studies, Achariya School of Business & Technology, Puducherry, India
***Research Guide & Professor & Head, Department of Commerce, School of Management, Pondicherry University, Puducherry, India
Online published on 25 March, 2013.
VAT is a multi-point destination based system of taxation, with tax being levied on value addition at each stage of transaction in the production/distribution chain. The term ‘value addition’ implies the increase in value of goods and services at each stage of production or transfer of goods and services. VAT is a tax on the final consumption of goods or services and is ultimately borne by the consumer. It is a multi-stage tax with the provision to allow ‘Input tax credit (ITC)’ on tax at an earlier stage, which can be appropriated against the VAT liability on subsequent sale. This paper finds the empirical facts of the impact of VAT on the economic development of the Tamilnadu from 2001 to 2011i.e (Pre & Post VAT Period) and compare the growth of Tax revenue with other States (southern India). Thus, the study concludes that, there is a significant impact in Commercial taxes and Gross Revenue in the pre & post VAT periods.
VAT, Sales Taxes
