How would VAT reduce the evasion of taxes on goods? – InterviewSolution

1.	How would VAT reduce the evasion of taxes on goods?
Answer» All producers and traders will have to keep genuine record of their sale and purchase. Everyone has to keep proper records and ask for bills for purchase. It is only on this basis they can show the tax already paid on cost of inputs. The tax inspectors will be able to match records of the seller and purchaser for verification. These records and verifications in VAT reduce the evasion of taxes on goods.

Discussion

No Comment Found

Related InterviewSolutions

What were the two main occupations of the Rig Vedic Aryans?
Name the two political institutions which exercised check on the powers of the King in the Rig Vedic period.
What w’as the position of women in the Rig Vedic age ?
Describe the social life of the Rig Vedic Aryans with reference to the following: (a) The Family Structure (b) Position of Women (c) Varna System
With reference to the following explain the main features of the Rig Vedic Economy: (a) Agriculture (b) Domestication of Animals (c) Trade Transactions, Crafts and Transportation
Mention any two archaeological sources to reconstruct the later Vedic Age.
Mention any two of the Ashrams in the life of a man in Aryan society.
What information do we gather from the later Vedic literature in respect of: (a) Spread of Vedic Civilization to many New Regions. (b) Role of Iron in later Vedic Economy.
Mention briefly the rituals and sacrifices of the later Vedic Aryans?
What is the message of the Bhagavad Gita?