VAT, Luxury Tax and GST

We have experts in handling local Tax issues which involves VAT, Luxury Tax, GST etc.

A value-added tax (VAT) or also General Sales tax (GST) is a form of consumption tax. From the perspective of the buyer it is a tax on the purchase price. From that of the seller it is a tax only on the value added to a product, material or service, from an accounting point of view, by this stage of its manufacture or distribution. The manufacturer remits to the government the difference between these two amounts and retains the rest for themselves to offset the taxes they had previously paid on the inputs.

The purpose of VAT is to generate tax revenues to the government similar to the corporate income tax or the personal income tax.
Luxury Tax is the tax charged on use of goods, services, property, facilities etc. for enjoyment or comfort or pleasure or consumption by any customer extraordinary to the necessary of life. It is a tax on luxury goods.

GST stands for “Goods and Services Tax”, and is proposed to be a comprehensive direct tax levy on manufacture, sale and consumption of goods as well as services at the national level. It will replace all indirect taxes levied on goods and services by the Indian Central and State governments. It is aimed at being comprehensive for most goods and services.