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The Globalization of Walmart

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What is Tax? A fee charged ("levied") by a government on a product, income, or activity. A means by which governments finance their expenditure by imposing charges on citizens and entities. Governments use taxation to encourage or discourage certain economic decisions. For example, reduction in taxable personal (or household) income by the amount paid as interest on home mortgage loans results in greater construction activity, and generates more jobs.
If tax is levied directly on personal or corporate income, then it is a direct tax. If tax is levied on the price of a good or service, then it is called an indirect tax. The purpose of taxation is to finance government expenditure. One of the most important uses of taxes is to finance public goods and services, such as street lighting and street cleaning. Since public goods and services do not allow a non-payer to be excluded, or allow exclusion by a consumer, there cannot be a market in the good or service, and so they need to be provided by the government or a quasi-government agency, which tend to finance themselves largely through taxes. What is VAT (Value Added Tax)? VAT was introduced into the Indian taxation system from 1st April 2005. This is a kind of consumption tax which gets imposed on products or services at different stages of manufacturing and at final sale. This is a multi-point process of levying tax on value addition which is collected at different stages of sale with a provision for set-off for tax paid at the stage of tax paid on purchase. So VAT is a tax to be paid at every stage of transaction of Purchase and Sale. For Example: Let’s say, when a refrigerator is manufactured by a company the manufacturer requires various raw materials and parts. For this he has to buy the raw materials and parts from other various suppliers when the supplier sends these raw materials and parts to the

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