YOu should have also shown to the readers what happens to the CST, so collected by the seller from other state, Is it treated as out put tax ?
What happens to the 1% compounding Tax Paid by the buyer from dealers of 5--50 lakh T.O. Can this 1% be treated as Input Tax ?
Why the article is so silent by about the legal powers of the assesseing autharities? I beleive the legality is more stringent and more harrassing. The govt and the public already know that there is lot of Black money invested in products sold . THe sales is white only up to a certain point. After that traders change hands but no recorded sales. Post VAT this will not be possible due to the link of previouse sales/ Purchase.
There is a problem of the margin ---which will be "Actual" post VAT. Underinvoicing will not be posssible. Hence more margin--more Gross Profit--more net profit---more IT ! How to prepare for that? Does the govt provide any cooling period to adjust to teh "Cascading" effect of accumalted margin ?
Where will the balck money go? Do the politician and goondas will accept cheque payment as donation/ransom ? There is hardly any diff between the two.
