Rationale behind Adoption of VAT in Jammu and Kashmir–A Study about Consumer's Perception

Abstract

Value Added Tax system has been designed to free the consumers from the ill effects of erstwhile Sales Tax System with an ultimate objective of providing them goods at cheaper prices. Does this new dispensation in the area of commodity taxation in the State of Jammu and Kashmir fulfill this objective and what were the other considerations of the state authorities behind the adoption of this tax system in the state? The paper is an attempt to analyze the principal causes/ facts underlying the adoption of VAT in Jammu and Kashmir vis-a-vis the perception of consumers.