How is value added tax calculated in India?

pls help me !! i want to know how is value added tax calculated in India?? and it would be better if u tell me how many others matter are there??? (please specify) thanx for the help!!

3 Replies to “How is value added tax calculated in India?”

  1. The value added tax is computed on final value for an example
    Sale price of item Rs 100
    Excise duty Rs 12
    Total Rs 112
    VAT( Presume 5%) Rs 5.60
    Total invoice Value Rs 117.60

  2. In India there is seperate VAT Act for each state and each act has its own provision and rate of tax. However all such act follow multipoint taxation system. Means each time a product is sale, VAT is charged but credit of input taken to discharge final tax liability by seller.

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