VAT - a Value Addition to the Indian Economy?

The Indian Fiscal Economy having been introduced to MODVAT, has for sometime been trying to ride two horses at the same time and in the process been falling off both. Learning from its bruises, the Finance Ministry decided that it was time to revamp the entire system of Indirect Taxation. It announced that in pursuance of the recommendations of the Tax Reforms Committee on Indirect Taxes chaired by Dr. Raja Chellaih, the system of Value Added Tax,\u27in its comprehensive form would be resorted to in place of the existing structure of specific Excise Duties, Octroi. Sales Tax and so on