Vat (value added tax): Opportunities and challenges ahead

Adoption of VAT would not only help in avoiding the cascading or pyramiding effect of indirect taxation, it would also help in reduction of tax evasion. It is obvious that VAT system is one important step towards the restructuring of indirect taxation system of the country at macro level. VAT will provide a significant role in creating and ensuring transparency as well as accountability in the indirect tax structure of our country. The present paper makes an attempt to highlight the different fundamental aspects of VAT which is a more disciplinary approach in the indirect tax regime.