Value added tax as a reform tool for the traders and merchants-an empirical study in Kolar and Bangalore Urban Districts
Sumathi S, Dr. Govindappa D
VAT as a form of indirect taxation was introduced as a broad-based tax covering the value added to each commodity by a firm where it passes various stages of production and distribution. The basic tenet on which the VAT was introduced was that of making tax structure more simpler and to improve the compliance from that of the traders and merchants. The dealers could get a set-off for input tax as well as tax paid on the previous purchases. It was again a progressive tax reform replacing the previous system of built-in self-assessment of VAT liability by the dealers and merchants (in terms of submission of returns upon setting off the tax credit. The present study was undertaken in the districts of Bangalore Urban and Kolar districts surveying the traders and merchants. The results have been analysed using SPSS using various tools for testing the hypothesis coined for the research.