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SE India thread Reloaded! |
whizkidd
Joined: May 14, 2004
Posts: > 500
From: India
PM, WWW
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Thx Vineet.
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vineet_d
Joined: Apr 15, 2004
Posts: > 500
From: MumBhai
PM |
whiz, get ur internet working man 
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govigov
Joined: Jul 30, 2004
Posts: > 500
From: Back home - Cochin
PM |
How does VAT effect the common man like you and me?
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Debu
Joined: Jan 15, 2003
Posts: > 500
From: Colchester, UK
PM |
@gov: Not very ,much. We were more affected by the End-Point taxation system. With that if we bought a product "Without-the-bill" the goverent didn't get the tax for the entire product and all its subcomponents. With the Multi-point taxation system (aka VAT) the goverment gets some money in any case.
Visit My Blog : Debu's Innovations'When nine hundred years old you will be, look as good, you will not' - Yoda |
govigov
Joined: Jul 30, 2004
Posts: > 500
From: Back home - Cochin
PM |
That means billing computers in spares will also be tax'd right? That means i have to pay them(govt) 10% extra. It affects not only items like that but also every other things. And the sellers cannot show "corrected" books and they would have to show their original sales. Right?
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Debu
Joined: Jan 15, 2003
Posts: > 500
From: Colchester, UK
PM |
@gov: Quite right, however, The reseller may choose not to bill the product at all. But that will make little difference to him, because he only has to pay tax on the Value Addition he makes. Hence he probably will choose to pay the tax as not paying would mean a very little profit, and much higher risk. But for us End-Buyers, I makes Little or No difference.
To explain this, Say the manufacturer gives the reseller the product at Rs. 10, the seller can sell it for Rs. 12, but he will only charge tax on Rs.2, because the Rs. 10 has already been paid tax for. i.e the reseller is adding Rs. 2 to the value of the product, while the manufacturer may be producing it for Rs. 7, and Rs. 3 is ithe Value Addition, so the manufacturer will pay tax on Rs. 3. This is VAT.
Visit My Blog : Debu's Innovations'When nine hundred years old you will be, look as good, you will not' - Yoda |
govigov
Joined: Jul 30, 2004
Posts: > 500
From: Back home - Cochin
PM |
I c. So the govt generate more income and the resellers profit will go down. They are using this to aim the big sellers like supermarket chains and bigbaazar's? But this also effects the small time sellers, right? (Like the kinda ppl that own a single shop for living)
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Debu
Joined: Jan 15, 2003
Posts: > 500
From: Colchester, UK
PM |
@Gov: In a way that is correct, but, now they dont charge a Whopping 7% at point of sales, they charge 2-5% depending on the value addition slabs, i think upto Rs. 25 of value addition, there is no tax at that point, so most very small shopkeepers are safe. 
Visit My Blog : Debu's Innovations'When nine hundred years old you will be, look as good, you will not' - Yoda |
govigov
Joined: Jul 30, 2004
Posts: > 500
From: Back home - Cochin
PM |
Hmmm . . . . . But then, why is everybody against VAT?
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Debu
Joined: Jan 15, 2003
Posts: > 500
From: Colchester, UK
PM |
That is because VAT is a pro-consumer system. In the Old system of Sales Tax, just by not providing the bill, the seller saved a whopping 7%!!!.
Visit My Blog : Debu's Innovations'When nine hundred years old you will be, look as good, you will not' - Yoda |
govigov
Joined: Jul 30, 2004
Posts: > 500
From: Back home - Cochin
PM |
Why are the state govt against this (like bihar)? does the VAT income go to the central or state govt?
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Debu
Joined: Jan 15, 2003
Posts: > 500
From: Colchester, UK
PM |
The bihar govt. is against it to generate votes  .
Visit My Blog : Debu's Innovations'When nine hundred years old you will be, look as good, you will not' - Yoda |
Ayush
Joined: Sep 12, 2003
Posts: > 500
From: Hyderabad, india
PM |
@deb i'm used to hearing this by now ;-)
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vineet_d
Joined: Apr 15, 2004
Posts: > 500
From: MumBhai
PM |
I have orderd a NEW T68i from ebay for 5300 INR for my friend vivekjk the phone will arrive anytime now
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Debu
Joined: Jan 15, 2003
Posts: > 500
From: Colchester, UK
PM |
@vineet: Good choice. The t68i is a really nice phone, If you owned it, you would probably know that. When you look at it, just remember, that phone was made, back when there were no colour screens, back when there were no cameraphones. Then you will realize what a beauty it is.
Visit My Blog : Debu's Innovations'When nine hundred years old you will be, look as good, you will not' - Yoda |
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Posted: 2005-03-31 06:28
