Different Sales tax incentives are available by State Government for the development of the state
These are of 3 types
- Exemption from tax
- Deferment of tax liability
- Remission of tax
|
Type of Sale tax Incentive |
Examples |
|
Exemption from tax
|
On certain goods, VAT is exempt (tax free) Also upto certain turnover, VAT is not payable |
|
Deferment of tax liability
|
Tax collected from customer But not paid to government immediately
It is deferred and paid after certain period or paid in instalments |
|
Remission of tax
|
Tax collected from customer but it is not to be paid to government
Also refund of input vat available |
