Difference between VAT and Income Tax

 

Difference between VAT and Income Tax

VAT

• Indirect tax

• Paid by the consumer througha registered person;

• Common rate of VAT is 15%;

• Needs to submit return monthly

INCOME TAX

• Direct tax;

• Paid by the owner of the business/company/firm

• For individual: Slab Rate

• Needs to submit return annually