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VAT
VAT is a abbreviation of Value Added Tax i.e.
Tax on Value Additions.
When we purchase/import raw materials we
have to pay VAT on import stage and then
after process the raw materials into finished
goods to sell or export. During the
manufacturing process we add some value i.e.
salary, wages, electricity, water, consumables
& profit etc. All these together is termed as
VALUE ADDITIONS and in general 15% tax
applicable on value additions.
Manufacturer/Suppliers/Trad
ers
All Manufacturer must have a VAT
Registration, it is mandatory
All importers/exporters must have a
VAT Registration, it is mandatory
All traders should have any one:
VAT/Turnover tax/BSCIC Registration
Functions in VDS
All the rules and regulations regarding VAT deduction at
source can be divided into three parts, viz:
who will deduct VAT at source, which are the services
requiring VAT deduction at source and the rates of
such deduction and which are the services do not
requiring VAT deduction at source;
Following VAT deduction at source how it has to be
deposited to the government treasury and how
certification of deduction has to be issued in form
Mushak-12kha; and
how the VAT deducted at source amount can be shown
in the relevant serials and columns of the VAT return.
FAQ?