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VALUE ADDED TAX (VAT)

Table of Contents

1.0  History of VAT…………………………………………………...…….……4 2.0  VAT in India…………………………………………………………...........5 I.	ABOLITION OF SALES TAX INCENTIVE SCHEMES FROM 1-1-2000…………………………………………………………………….5 II. NOW IN THE LAST PHASE FROM 1-4-2005……………………….5 3.0 Constitution of India    …………………………...………………………...6 I.	 Proposed Indirect Tax System in India……………………...............7 II. What is VAT ……………….….………….............................................8 III. How is VAT charged …………………………….…...……....................8 IV. Rates Under The Regime ……………………………….…… .............9 4.0 Impact of VAT on Dealers - Advantage and Disadvantages…..…10,11 I.	Implementation and success of VAT depends……………………..12 II. State VAT Act --  Scheme of Taxation………………………………13 5.0 Computation Procedure of VAT…………………………………….. ….14 I.	Present first point sales tax system in the states……….......15 II. State Vat system from 1-4-2005………………………………..16 III. Effect of VAT system on final consumers in states………….17 IV. Computation……………………………………………......18,19,20 6.0 State VAT Rules……………………………………………………………21 I.	Set off available to Manufactures in the states………………22 II. Set Working for Manufactures………………………………….23 III. Set off for Traders…………………………………………….......24 7.0 Why VAT in India………………………………………………………….25 8.0 White Paper on VAT……………………………………………................28 I.	 Rate structure and classification of commodities under VAT......28 II. Related Issues………………………………………………………......29 III. Procedure of self –assessment of VAT liability and Audit of Dealer…………………………………………………………30 IV. Sales Tax levy on purchase & sales………………………………….31

9.0	Value Added Tax Systems…………………………………………….32 I.	Corporate Sales Tax –VAT…………………………………………….33 II. Internal System – VAT………………………………………………...34 III. Value Adder Tax System………………………………………………35

10.0	Conclusion…………………………………………………………36,37,38 11.0	VAT Return Format………………………………………….39,40,41,42 12.0	BIBLIOGRAPHY……………………………………………………….43

	The value added tax (VAT) was first introduced in France in 1954. it is the result of France & other members of European economic community (EEC) for simplification of commodity taxes.

	At present, more than 130 nations in the world have adopted VAT system for indirect taxation. Except America & India most of the major countries are VAT compliant including China, Pakistan, and Bangladesh & Sri lanka etc.

	All over world VAT is payment on both goods & services as they form the part of national GDP, excise duty & sales tax are merged into single VAT.

	The scheme of indirect taxation (VAT) adopted by the most of nations is very simple. The seller of goods & the provider of service charges single VAT to customer, Avail full input tax credit paid and pay the differences as VAT to the government treasury.

	The compliance system in VAT nations is very simple. Minimum, interface between the tax payer & the tax collector. However, heavy penalties are provided for the VAT defaulters.

VAT IN INDIA In India, reforms process started in 1991; the national institute of public finance & policy (NIPFP) studied the indirect taxation system in other nations & India and recommended independent dual VAT system. To replace state sales tax & central sales tax.

In 1994 may; empowered committee (EC) of all the finance ministers of the states was constituted with a task of successful launch of uniform state VAT system in India.

So far, the EC has achieved following major tasks.

ABOLITION OF SALES TAX INCENTIVE SCHEMES FROM 1-1-2000

	Uniform rates for all major commodities.

	Uniform state VAT laws based on model VAT laws

	Compensation towards loss of revenue to the states by the central.

NOW IN THE LAST PHASE FROM 1-4-2005,

	Implementation of VAT system by the states (assent to the VAT acts by the president).

	The central sales tax (C.S.T) to be phased out …2%....1%...0%

	What is VAT?

Vat is a system that taxes every stage of the value chain right from raw materials to the final product. However tax is payable only on the value added at each stage.

	How is VAT charged?

All registered dealers, regardless of where they are in the chain of manufacture and production must charge VAT on their sales of taxable goods and collect it from their customers. Registered dealers must issue a tax invoice to other registered dealers showing the VAT amount being charged as a separate amount. Registered dealers who pay VAT on their purchases can normally claim a “set-off” for the VAT paid to their suppliers. As a result, VAT is not a cost to the dealers. Dealers must ensure that tax is charged separately in their purchase invoice in order to be eligible to claim set-off. Certain dealers who sell mainly to consumers at retail level can opt for a simplified system of VAT calculation and payment under a Composition Scheme. Under the Composition Scheme, dealers will not issue a tax invoice or show VAT as a separate amount on a bill or cash memorandum

	Rates Under The Regime:--

Under the VAT Act, there will be four categories of commodities. Each of these categories will attract a different rate of sale tax i.e. 0, 1, 4 & 12.5 percent. The best part is that, there will not be any extra levels like turnover tax, surcharge, resale tax, additional tax and so on.

VAT is going to replace the four existing taxes • The Bombay Sales Tax Act, 1959 • The Maharashtra Sales Tax on the Transfer of Right to Use Any Goods For Any Purpose Act, 1985 • The Maharashtra Sales Tax on the Transfer of Property in Goods Involved in the Execution of Works Contract (re-enacted) Act, 1989 • The Bombay Sales of Motor Spirit Taxation Act, 1958

Before implementing of VAT System, in Maharashtra the sales tax rate is 13 percent on various consumer durables but with additional taxes, it goes up to 15.8 percent. But now under the VAT, these commodities will be taxed at just 12.5 percent and not 15.8 percent.

The VAT rates will be uniform across states, so the prices of goods will be similar in all the states that have implemented VAT. While the prices of some commodities will go up during the VAT regime, the prices of others will fall. However, the exact impact will differ from state to state. Naturally, in states that were earlier charging a higher sales tax rate than the VAT rate; the prices will go down and vice versa.

In Maharashtra, the sales tax rates ranged between 1 percent and 20 percent depending on the nature of commodity, depending on the nature of the commodity. So those commodities that were taxed at the rate of 20 percent will now be charged a maximum of 12.5 percent, under VAT.

Impact of VAT on Dealers - Advantage and Disadvantages

ADVANTAGES: 	Dealers get input credit for taxes paid on purchase. Therefore, they will benefit by making purchases “with a bill” 	Dealers will benefit by stocking goods which have already incurred Value Added Tax rather than risk purchasing from unregistered dealer. 	The tax net is broader practically eliminating the unregistered dealer and providing fair opportunity to genuine dealers. 	 Dealers will benefit from disclosing actual turnover especially in a retail scenario, where the tax collected by the supplier will be available for claiming credit. For example, incidental charges cannot be disguised with the new regime. 	Dealers will not be taxed multiple times. 	Dealers will no longer require declaration form, there by reducing his workload considerably. 	Due to lowered tax, dealers will have less in the classification of goods. 	There will be uniformity in taxes from state to state. 	Bottlenecks associated with tax assessments will be eliminated as self-assessment in the basis of VAT.

DISADVANTAGES: 	Record keeping, classification of goods and suppliers will become more complex. Automation of accounting procedure will be required. 	Every purchase made must be recorded. The current sales tax structure requires only the maintaining of sales records. 	The revenue neutral rate will be slightly higher than the present rate of tax. 	VAT will be charged at the normal rate will be slightly higher than the present rate of tax. 	The initial uncertainty of laws and procedure will cause confusion & increase red tape & costs. This is however just a temporary situation. 	In case of importing of goods from outside the state, the dealer will not be eligible for credit of tax, there by raising the cost of inters state purchases. 	There is complication regarding credit of sales tax for goods purchased prior to the VAT introduce date. All goods bought after April 1, 2005 and still in stock on April 1, 2005 will be eligible. The tax credit will be available over a period of six months after a interval of three months needed for verification. 	With services not included in the VAT regime, problem of reversal of credit of service tax paid will arise especially in the cases of outsourced manufacturing.

If you put aside the increased documentation and recordings required by traders, VAT does at the end of the day reduce the tax burden in most situations and definitely for the end customer.

However, the implementation and success of VAT depends on the following: a.	Allocation of funds in the forthcoming budget for revenue loss which the State Governments might incur by having to introduce VAT b.	Shifting of Service Tax from the Centre to the States c.	Changes to the existing CST Act need to be made d.	Abolition of additional excise duty on products like textiles

Computation Procedure Of VAT

Computation Procedure of VAT:

Vat is most certainly a more transparent and accurate system of taxation. The existing sales tax structure allowed for double taxation thereby cascading the tax burden. For example, before producing a commodity, inputs were first taxed, the produced commodity was then taxed and finally at the time of sale the entire commodity was taxed once again. By taxing the commodity multiple times, it had in effect increased the cost of the goods and therefore the price the end of consumer had to pay for it. Value added taxation creates an incentive for each participant in the chain from production to sale. A trader at the end of the month or quarter needs to produce all his purchase invoices and all the sale invoices. Trader get a tax credit for all his purchases (since those are good and services for which their producers have already been taxed), and is liable for taxation only on the difference between his purchase and sales invoices. Let us take the hypothetical figures to clarify the computation procedure of VAT. The following transaction chain under VAT regime assumes CST rate is 4 % and VAT rate is 12.5%.

Seller to buyer	Cost price	Value Addition (VA) (Including Profit Rs.)	Selling Price (Rs.) (Excluding tax)	Tax rate	Invoice Value (Rs.) (Including Tax)	Tax Payable (Rs.)	Tax Credit (Rs.)	Net CST Outflow [i.e. seller will deposit in government treasury] (Rs.)	Net VAT Outflow [i.e. seller will deposit in government treasury] (Rs.)	Total new tax outflow [i.e. seller will deposit in government treasury ] (Rs.) 1	2	3	4	5	6= (4+7)	7=(4*5)	8	9	10=(7-8)	11=(9+10) X to Y	0	100 (VA)+4 (CST)	100	4% CST	104	4	0	4.00	0	4 Y to Z	104	50	154	12.5% VAT	173.25	19.25	0	0	19.25	19.25 Z to R	154	30	184	12.5% VAT	207.00	23.00	19.25	0	3.75	3.75 R to Cons- umer	184	10	194	12.5% VAT	218.25	24.25	23.00	0	1.25	1.25 TOTAL	4.00	24.25	28.25 Total tax to the government (CST+VAT)			28.25

From the above table it is found that though real value addition should be Rs.190 [i.e. (Rs.100 + Rs.50 + Rs.30 + Rs.10], total value addition(including CST) in all stages calculated is Rs. 194 [i.e. (Rs.100 + Rs.4+ Rs.50 + Rs.30 + Rs.10] as CST paid cannot be claimed for credit under present VAT system. Therefore, total VAT collected at different stages is Rs.24.25 (i.e. 12.5% of Rs. 194). Here it is important to note that until CST is totally phased out, the main objective of VAT will be lost. Because amount of VAT calculated is Rs.24.25 (i.e. 12.5% of Rs. 194) in lieu of actual amount of VAT is Rs. 23.75 (i.e. 12.5% of Rs. 190) in the sense that manufacturer will have to bear an additional tax burden Rs 0.05 (i.e.12.5% of Rs. 4, which is CST)under present VAT system. Truly speaking, VAT rate should not be charged on Rs. 4 (i.e. 4% of Rs. 100 as inter- state trade). However, the final price, which the consumer has to pay under present VAT regime, is Rs. 218.25 (i.e. Rs. 194 +. Rs.24.25), thereby ultimately consumer will have to pay additional tax burden until CST system is entirely abolished.

State VAT Rules

Why VAT in India?

The trading community in India had exploited the erstwhile sales tax system in adopting loopholes in the system administered by the state or the centre. If a well-administered system comes in, it will close avenues for traders and business mentor evade paying taxes. They will also be compelled to keep proper records of their sales and purchases. Many sections argue that the trading community has been amongst the biggest offenders when it comes to evading taxes. Under the VAT system, no exemptions will be given and a tax will be levied at each stage of transaction of a product. At each stage of value-addition, the tax levied on the inputs can be claimed back from the tax authorities. Industry experts argue that the VAT system, if enforced properly, forms part of the fiscal consolidation strategy in India. It could, in fact, help address the fiscal deficit problem and the revenues estimated to be collected could actually mean lowering of the fiscal deficit burden for the government. Further any globally accepted tax administrative system will only help India integrate better in the World Trade Organization regime. The reason for advocating for VAT is that it has replaced a complicated tax structure that will also do away with the fraudulent practices. Under a VAT regime, the point of levy will be shifted to consuming state. The producing states would still earn higher revenue, as higher production in the state of origin would also lead to higher employment, overall development and ultimately higher consumption levels in that state. In such scenario, all investment decisions to a great extent would depend upon the quality of infrastructure, skilled and cheap labour and other non-tax incentives provided by the states. This would be an ideal scenario for overall growth and investment in the country and eventually it will improve the competitive advantage of Indian industry to face the global competition. Taxation experts, however, say VAT is good for the consumer as household expenses will come down by 4 to 8 % in the long run. This is based on the hypothesis that most people in the tax chain will bargain with each other for maximum benefits. The experts say consumers will start getting the full benefit of VAT a year after its implementation. Recently the World Bank has also urged India to expedite the introduction of VAT as this is the best way to tax services, which now form more than half of the GDP.

The following are the main objectives in diverting from the erstwhile sale tax system to VAT:

	To increase the competitiveness of Indian industry by removing the cascading effect of the erstwhile sale tax system;

	To remove the multiple taxes which were prevalent in the Indian tax system;

	To ensure that all barriers to inter-state trade and commerce should be removed and a unified national market is created;

	To also ensure that there is simplicity and transparency in the system;

	To bring revenue neutrality in the long run under VAT regime;

	To promote the self-regulated mechanism;

	To encourage and result in a better administered system that deters tax evasion;

	To keep proper records of sales and purchases made by taxpayers;

	To avoid the problem of under valuing, as all stages of production and distribution are subject to a tax.

	To prevent exemption and impose tax at each stage of value-addition to products under the VAT system;

	To encourage the taxpayers by the input tax credit method ensuring better tax compliance;

	To generate a trail of invoices that supports effective audit and enforcement strategies.

	To help in fiscal consolidation for the country in bringing a steady source of revenue reducing the debt burden.

	White Paper on VAT:

The White Paper on VAT formally released by the Union Finance Minister, Mr. P. Chidambaram, under the convener ship of Empowered Committee of State Finance Ministers, Dr. Asim Kumar Dasgupta on 17th January2005. The White Paper on state level VAT is presented in three parts. The first part starts with the justification of VAT and its background. In the second part, the main design of VAT, as evolved on the basis of a consensus among the states through repeated discussions in the Empowered Committee has been elaborated. Finally an attempt has been made to discuss the other related issues for effective implementation of VAT in the third part. The main issues of White Paper on VAT are summed up as below.

(1) Rate structure and classification of commodities under VAT

The White Paper on VAT has made a Road map for levy of a uniform state level tax on over 550 items. Petrol, diesel, liquor, lottery have been kept out of the VAT regime. Some states like Delhi have imposed VAT on diesel at 20%, which is higher than the 12% sales tax charged earlier.

VAT can be classified into four categories, under each of which a different rate is prescribed. 	Category I: As many as 46 items, which are exempt from VAT, are covered under this category. These are natural and unprocessed products in the unorganized sector, the items that are legally barred from taxation and the ones that have social implications. . 	Category II: Special Rate of 1% VAT is applicable to gold and silver ornaments, etc.

	Category III: A rate of 4% VAT is applicable. This category covers the largest number of goods – about 270. They are items of basic necessities such as medicines and drugs, all agricultural and industrial inputs, capital goods and declared goods.

	Category IV: The general rate of 12.50% VAT is applicable to all the remaining commodities.

(2) Related Issues

While the VAT panel has relaxed the upper limit for traders coming under the VAT regime from Rs. 40 lakhs to Rs. 50 lakhs turnover, traders in this category would have to make a choice of paying a composite VAT rate or forego input tax credit. Mr. Chidambaram sought to encourage all States to implement the new tax regime. Under the formula commended by the panel, States would get 100% compensation for revenue loss, if any, in the first year, while 75 % of the loss would be compensated in the second year and 50 % in third year. The Central Sales Tax of 4%, which yields Rs. 15,000 crore to States, would be phased out after April 2006. The White Paper also emphasizes the potentiality of crosschecks with computerized information systems. Doubts are, however, being raised as to whether the proposed computerization involving intense interaction with computers for every trader is feasible. The White Paper has not addressed frontally the issues propounded by the Kelkar Task Force in regard to the States’ rights to tax services. VAT by definition has to cover both services and goods. It does not come out clearly in favour of including services under the VAT net. This is, of course, a matter that the Finance Minister will have to address by empowering the States to levy service tax. It is logical that States should be so empowered.

(3) Procedure of self –assessment of VAT liability and Audit of Dealer

One major simplification proposed under VAT regime is that unlike the existing sales tax system there will be no compulsory scrutiny of returns. If no specific notice is issued by the VAT department proposing departmental audit of the books of accounts of the dealer within the time limit specified in the Act, the dealer will be deemed to have been self-assessed on the basis of returns submitted by him. Correctness of self-assessment should be checked through a system of departmental audit. A certain percentage of the dealers will be taken up for audit every year on a scientific basis. If, however, evasion is detected on audit, the concerned dealer may be taken up for audit for previous periods. The audit team will conduct its work in a time-bound manner and audit must be completed within six months. The audit report will be transparently sent to the dealer also.

VALUE ADDED TAX SYSTEMS

o	Conclusion:

VAT is one of the most radical reforms that have been implemented for the Indian economy after years of political and economic debate. In implementing VAT, the biggest benefit perhaps is that it could unite India into a large common market. This will translate to better business policy as each producer will have a big common market before him. Besides, if the government makes a conflict with the trading community, the benefits of VAT may not be materialized effectively as a big part of the currently formal economy may turn informal in order to avoid paying any tax at all. Admittedly, VAT is more efficient tax mechanism in the sense that it avoids cascading of taxes and renders self-policing easy thereby problems of double taxation can be removed. At the same time, it can breed sophisticated attempts at evasion, since evidence of tax paid on inputs is virtually a gateway to VAT refunds. Persons who specialize in tax avoidance can manipulate such evidence. Experience in the UK and the EU with VAT has shown that large leakages are common in VAT, with false claims for refund. Experience in India with MODVAT [now known as Central Value Added Tax (CENVAT)] had highlighted this when a CAG’s enquiry showed thousands of crore of MODVAT being evaded through false entries of inputs bearing excise duties. VAT may not impact consumers as much as traders. One hopes that VAT— 2005 will usher in a new era of transparent and consumer- friendly tax system that adds value to economic reforms in India. The government perception is that VAT will help common people, traders, industrialists and also the government. According to it, VAT is indeed a move towards more efficiency, equal competition and fairness in the taxation system. The tax structure, in fact will become simple and more transparent and this will improve tax compliance and also augment revenue growth. The states are supposed to increase their level of preparedness substantially by implementing a clear plan of action with regard to computerization, training and orientation, designing of forms and documents as well as briefing of trade and industry. It is believed that a successful implementation of the long awaited VAT mechanism from 1st April, 2005 by all the States and UTs will enable both the industry as well as the economy in India to become more competitive. Finally it can be concluded that to cope with the changing scenario of indirect taxation, if practicing accountants refresh their knowledge, they can exploit new found opportunities made under VAT regime by providing advice to their clients.

1.	VAT and You :

If you live in Mumbai, you probably stand to benefit from VAT. Consumers in Mumbai are already being taxed, on virtually every essential commodity, at sales tax rates that are amongst the highest in the country. Many essential items like processed salt, chilly powder, turmeric, jaggery, coconut, maida, suji and besan, were taxed at over 4.5 percent (4 percent sales tax plus various other taxes). These will now be taxed at a VAT rate of 4 percent, so you can expect a marginal dip in the prices of these commodities.

2.	Luxuries Become Affordable:

Coming back to Maharashtra, household appliances like refrigerators, air conditioners and television sets, among other items, would cost marginally less. This is because the tax on these items will be reduced from 15.8 percent to 12.5 percent.

3.	Goodies Get Cheaper:

Aerated waters, non-alcoholic beverages chocolates, etc, will also become much cheaper than before. Eating at four and five star hotels will also become cheaper, with that rates falling from 20 percent plus to 12.5 percent. The same goes for cosmetics, perfumes, deodorants, hair oils, shampoos and so on. Many other items which used to attract a 15.8 percent tax in Maharashtra, such as kitchenware, glassware, chinaware, toothpaste, etc. will now attract 12.5 percent.

4.	Life Savers Become More Precious

Some life saving drugs, including insulin, that were totally exempt from tax, will attract a 4 percent tax under the VAT regime. Others, which were earlier subject to a 9 percent tax rate, will become cheaper. The prices of around 24 life saving devices, including oxygenators for cardio- pulmonary bypass, pressure monitoring lines, intravenous catheters, intra- coronary and vascular stents and intra vascular ultrasound probes, will increase. This is because these devices, which were exempt from tax, will now be taxed at the rate of 12.5 percent.

VAT Return Format (Monthly return) FORM 201 (See rule 17, 18(2) and 45) Return – cum – chalan of tax payable by a dealer under M.V.A.T. Act 2002 [For Tax payment through Treasury / Bank]

VAT Return format made by: PRICE WATERHOUSE COOPERS

VAT RETURN MONTHLY RETURN FORM 201 (See rule 17,18(2) and 45) Return – cum – chalan of tax payable by a dealer under M.V.A.T. Act 2002 [For Tax payment through Treasury / Bank]

1)	M.V.A.T.R.C. No.     421501 / S / 111      	Date: 1st April 1996

2)	C.S.T.R.C. No.     421501 / C / 70

Date: 1st April 1996

3)	Period covered by the return 	From	1ST April                         	To	30th April

4)

Name and address of the dealer

ALBRIGHT & WILSON CHEMICALS INDIA LTD. MIDC, CHEMICAL ZONE, AMP GATE. AMBERNATH (THANE) : 421501

Particulars	Amount (Rs.)

5)	Gross turnover of sales including branch transfers to other States made during the period 17,93,98,654

Deduct:

6) Branch transfer to other states 71,54,864

7)	Sales under section 8 NIL

8)	Tax free sales u/s 5 NIL

9)	Taxes collected separately or otherwise and other deductions, if any	13,73,85,327

10) Balance turnover of sales BOX 5 – [6+7+8+9]	3,48,58,463

11) Sales tax payable (as per box 18) 19,21,438

12)	Less: Set off available (as per box 20) 16,68,059

13) Balance payable / refundable (11-12) 2,53,379

14)	(A)* Amount of set off carried forward to next return	 		(B)* Amount of refund claimed in this return

15)	** Balance payable	16)	Less amount already paid including TDS, if any 17)	Amount paid along with this Return – cum – chalan	19)	Turnover of purchases and tax paid at different rates Particulars Imports from out of India. Inter state purchases	3,53,43,376 Consignment Transfer Local purchases from registered dealers	3,44,45,383 Local purchases from unregistered dealers Total turnover of purchases	6,97,88,759 Local purchases from registered dealers eligible for set off and tax paid at different rates. Sr. No.	 Rate of Tax	    Net Turnover of Purchases (Rs.)	         Tax Paid (Rs.) i               	         4%	2,85,79,849	11,43,194 Ii	     12.5%	41,48,632	5,18,579 Iii Iv Total /		3,27,28,481	16,61,773


 * if Total of Box 12 exceeds Total of Box 11, they you can, in accordance with the rules, carry forward set off in Box 14 (A) for next return or claim refund in Box 14 (B) for this return.


 * if Total of Box 11 exceeds Box 12, then pay the difference and state the amount in box 17

The statements contained in this return in boxes 1 to 20 are true to the best of my knowledge and belief.

Date: ____________________		Signature/__________________

18)	Turnover of sales and tax payable at different rates as per section 6	       Sr. No.	   Rate of Tax	     Net Turnover of sales (Rs.)	     Tax Payable (Rs.)	i.		        4%	1,66,37,006	6,65,480	ii.		      12.5%	94,55,040	11,81,880	iii.		      15.0%        (WCT)	4,93,840	74,078	iv.					       Total /		2,65,85,886	19,21,438

20)	Computation of set-off to be claimed as per this return

Particulars Purchase value (Rs.)	  Tax amount (Rs.) 1	Total tax paid on taxable purchases from registered dealers	3,27,28,481	16,61,773

2	Less- Reduction in the amount of set off at the rate of 4% of the purchase price under rule 53(1), 53(2) and 53(3)		1,38,178 3	Less- Reduction in the amount of set off under rule 53(4), 53(5), 53(6), 53(7) and 53(8)		    __ 4	Less- other reduction in set off, if any 64,551     5	Total reduction (2+3+4) 2,02,729     6	Balance : Net Set off for the period of this return (1-5)		14,59,044     7	Less : Adjustment to set – off claimed in earlier return (set – off excess claimed)		    __ 8	Add : Adjustment to set – off claimed in earlier return (set – off short claimed)		    __ 9	Add : Set off brought forward from previous Return 10	Add : * Set off on opening stock of trading as on 1st April,2005 as per statement	46,26,818	2,09,015 11	Total set off available (6+8+9+10-7) 3,73,55,299	16,68,059

BIBLIOGRAPHY:

Reports

	Implementation of VAT in India : Siddhartha Sankar Saha 	VAT in India – Issues & Concerns : Y Ravikumar

Books & Journal

	CA Journal – The Value of VAT (June 2005) 	CFA Analyst (April 2005) 	VAT-A way of the Indian tax (G.K.Pillai) 	Prime on Value Added Tax (Chelliah Raja)

Websites

	WWW.salestax.maharashtra.gov.in 	WWW.moneycontrol.com 	www.icai.org 	www.icwai.org