There are many local registrations and taxes which affect our day to day business. One amongst them is Value Added Tax, which is imposed on businesses engaged in trading or manufacturing goods in India. Just as Service Tax is a tax on services, VAT is a tax on goods. Value Added Tax, as the name suggest, is a multi-point tax on value addition which is collected at different stages of sale with a provision for set-off of tax paid at the previous stage (Input Tax Credit). Therefore, VAT is ultimately borne by the consumer.

Value Added Tax comes under the purview of the respective State laws. It is collected and governed by the State Government, so each State Government has distinct rules applicable for their State based on the type of goods manufactured or sold. VAT Registration is mandatory in most states for traders or manufacturers having turnover above a specified limit. Registered dealers or manufacturers are also required to file VAT Returns within due dates prescribed by the respective state government. Hence, it is very essential for manufactures or traders to be aware of their state VAT law and make necessary compliances in order to avoid penalty.

Kgac helps trading and manufacturing companies and other enterprises to comply with the VAT laws of the state in which it is registered in every way.