Differentiate between 'Value-Added-Tax' and 'Sales tax.' - Vidyadip

Question

Differentiate between 'Value-Added-Tax' and 'Sales tax.'

✓

Answer

Value-Added-Tax	Sales Tax
(Value-Added Tax) is collected by all sellers in each stage of the supply chain. Suppliers, manufacturers, distributors and retailers all collect the value added tax on taxable sales. Suppliers, manufacturers, distributors, retailers and end consumers all pay the VAT on their purchases.	Sales tax is collected by the retailer when the final sale in the supply chain is reached via a sale to the end consumer. End consumers pay the sales tax on their purchases.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "1 Marks Question" from Entrepreneurial Planning→Entrepreneurial Planning — all question types→Entrepreneurship STD 12 Commerce question papers→CBSE Board STD 12 Commerce question papers→CBSE Board question paper generator→

Similar questions

If an individual works regularly for others and get remuneration in return, then he/ she is engaged in which type of economic activity?

What can be done by an entrepreneur to impart a distinct identity to his own brand?

Define business plan.

Rehan and Nishant got jobs in IT sector and were based in Bangalore. Rehan was from Delhi and Nishant was from Gujarat. Both were missing home food. The canteen food was highly unappetising. They checked out several tiffin services but did not find them satisfactory. The food was not apt for their taste buds. So, they decided to quit their jobs and start a professionally managed tiffin service by the name of 'Sanjha Chulha' They not only gave chapatis and North Indian curries, but also started with 'Gujarati thali', 'Bengali thali' as regional meals. What was the source of perceiving the basic idea?

Vipin Taneja has completed his Master's degree in Computer Science from IIT, Delhi. He thought of an attractive economic idea which could be implemented to create a business, earn profits and ensure further growth. The idea was to link the different restaurants with the Indian railway network so that while travelling, the railway passengers can order food as per their liking.
List any two elements of the concept discussed above.

Why is pricing crucial in an entrepreneurial activity?

Answer each of these questions in about fifteen words:
Name the most important pre-requisite to start an enterprise.

Define Operation Plan.

Name some intangible things related with firms.

Name the most important pre-requisite to start an enterprise.