Value Added Tax (VAT) is
imposed on the value added to each commodity
by a firm during all stages of production and
distribution. In simple terms, it is a fee assessed
against businesses at each step of the production
and distribution process, usually whenever a
product is resold or value is added to it.
Valueadded taxation in India was introduced as
an indirect value added tax (VAT) into the
Indian taxation system from 1 April 2005.