An Indispensable New Resource for CEOs, Policy Framers, Change Agents and Administrators!

Mahesh C Purohit

Value Added Tax (VAT) has emerged as one of the most important fiscal innovations of the present century. As many as 90 countries have switched over to VAT during the last decade and a half bringing the total number of VAT countries to more than 141.

India has adopted a system of dual VAT: CenVAT at the federal level and State-VAT at the State level. Haryana was the first State to replace its sales tax by VAT on April 1, 2003. Majority of States (18 States) introduced VAT on April 1, 2005. Since then all other states have switched over to VAT leaving only Uttar Pradesh out of it.

In this context, this book presents evolution of VAT, analyses its rationale and brings out the reasons for its popularity as a fiscal measure. In the Indian context, it presents up-to-date developments in introduction of VAT by the Union and by all the States.

The coverage includes an in-depth analysis of the rates, base, exemptions, taxation of services and harmonization of tax rates. Due emphasis is given to organization for tax administration, operations of VAT in India and other countries and to the MIS for tax administration. Special emphasis is laid on Tax Information Exchange System (TINXSYS) of India for having information on dealers entering into inter-State trade.

The book presents an extremely informative account of the management of VAT in France (especially of the forfeit system for small dealers). GST in Canada, and federal and state VAT in Brazil.

In the light of the experiences of all the VAT countries, the study aims at drawing attention towards the key issues in implementation of VAT.








 Rs. 500/- 

US $ 45

Pages xxiv+293 

Cloth Bound

**Published 2007 

Introduction: Evolution of VAT, Variants of VAT, Methods of Computation of VAT / Economic Effects of VAT / Structure of VAT: Rate Structure, Base and Coverage / VAT in Indian Federation: CenVAT, State VAT, Structure of State VAT, Procedures under State-VAT, Taxation of Inter-State Trade, Proposed Comprehensive State VAT /VAT in Federal Countries- A Study of Brazil and Canada / Harmonization of VAT in European Union / General Features of VAT management: Registration of Dealers, Submission of Return and Payment of Tax. Assessment and Assessing Authorities, Accounting Obligations, Small Farmers and Producers in Primary Sector / Management of VAT in France: A Case Study / MIS for VAT Administration and Information Exchange System:

The MIS for VAT Administration, Objective of MIS, MIS in France, MIS in Canada, MIS in European Union, Integrated MIS in other Countries, MIS in Indian States, Conclusions and Suggested MIS for VAT Administration, Pre-requisite of MIS / Issues in Implementation of VAT.  

Dr. Mahesh C Purohit is Director of the Foundation for Public Economics and Policy Research. Earlier, he has worked as Member- Secretary of the Empowered Committee of State Finance Ministers to Monitor Sales Tax Reforms (1999-2001), Secretary to the Committee of State Finance Ministers (1998), Secretary to the Committee of Chief Ministers on VAT and Incentives to Backward Areas (1999), and Member-Secretary to the Committee of Finance Secretaries on Backward Area Incentives (1999). Dr. Purohit has been a Professor at the National Institute of Public Finance and Policy, New Delhi; a Senior Research Fellow at the Centre for Advanced Studies in Industrial Economics and Public Finance, University of Bombay and a Post- Doctoral Fellow at the Department of Economics, University of California, USA.

He has been a visiting Professor at the Maison Des Sciences De Lí Homme, Paris: Institute of Fiscal and Monetary Policy, Tokyo and International Tax Programme, Harvard Law School, Cambridge, M.A.

He has undertaken many International assignments that include Advisor in Tax Policy and Chief Technical Advisor, UNDP; member of a Fiscal Mission of IMF and rendered advice to the Royal Government of Bhutan in respect of reforms in their tax system.

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