‘VAT is only going to bring greater transparency’
The much-awaited, discussed, debated and deferred several times, Value Added Tax (VAT), supposedly one of the biggest Indian tax reform since independence, got introduced on April 1, 2005 in 20 Indian states. The remaining states are yet to decide whether or not to adopt it but it appears they may introduce it soon. Hitesh Sharma, Partner, Ernst & Young, talks to Divya Nair about the present status of the VAT regime, the differences in opinion surrounding its implementation across the country, and impact on the pharmaceutical industry in India.