LAND UTILIZATION Land is a scarce resource, whose supply is fixed for all practical purposes. At the same time, the demand for land for various competing purposes is continuously increasing with the increase in human population and economic growth.Land use pattern at any given time is determined by several factors including size of human and livestock population, the demand pattern, the technology in use, the cultural traditions, the location and capability of land, institutional factors like ownership pattern and rights scale regulation. Major Types of Land Utilization in India : As in all other countries, land in India is put to various uses. The utilization of land depends upon physical factors like topography, soil and climate as well as upon human factors such as the density of population, duration of occupation of the area,land tenure and technical levels of the people.There are spatial and temporal difference in land utilization due to the continued interplay of phys...
VALUE ADDED TAX (VAT)
It is a tax on the value added to a good or service. Value added is the difference between a firm's revenue and it's payment to other firms. It is defined as the tax to be paid by all sellers of goods and services on the basis of value added by their respective firms. It is levied on the value added to the product of each stage in the chain of transaction.
Characteristics
a)It us multistage tax rather than single stage one like the retail sale tax.
b)It is levied on all stages of production and distribution.
c)It is comprehensive unlike selective excises.
d)It is collected in bits at each stage of production and distribution.
e)It is method of taxing by instalments final spending in the domestic economy.
f)It falls on each input entering into final products once and only once.
Merits
a)It avoids cost cascading effect because it ensures that an input is taxed only once.
b)It is neutral between the processes of integration of production and therefore helps the economy in adopting those forms of production which are economically more suitable.
c)It is neutral between costs because it taxes all value added. Thus,it does not hinder the adoption of advanced capital intensive technology.
d)It is neutral towards resource allocation.
e)It encouraged efficiency because a firm is not exempted from tax liability even if it incurs losses. Thus,firm will try to improve its performance and reduce production cost.
f)There us less possibilities of tax evasion as tax is divided into smaller parts.
g)It has great deal of administrative flexibility in the sense that it can be modified to suit different policy objectives.
Demerits
a)It is complicated as there is requirement of efficient government machinery to do cross checking.
b)A country should have sufficiently advanced financial and economic structure for the adoption of VAT.
c)It should have habit of keeping proper records.
d)VAT system depends lot in cooperation of tax payer . Each firm has to calculate it's tax liability and also to find out the taxes paid by earlier firm.
e) Maintenance of costly account itself become uneconomic especially for Smaller firm.
f)In India , speculative hoarding , non competitive price rise and other such practices are very common. In such a market , VAT may fail to induce efficiency among producers and sellers.
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