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The objective for introducing VAT are- 1. To avail credit on inputs leading to cost efficiency. 2. Ensure equitable distribution of tax impact among st dealers. 3. Easy compliance through transparent and easy procedures exist under it and only two rates are there. 4. Easy computation of tax. 5. Avoids double taxation through input rebate. 6. Prevents distortions in trade and economy through uniform tax rates. 7. Calculation Easy and Simple 8. Transparency 9. Increased Tax Base 10. Competitive Price