Synopsis Value Added Tax (VAT), a fiscal innovation of early 1960s, has claimed world-wide attention as more and more countries are adopting it in varying degrees to reform their systems of commodity taxation. This book examines various theoretical issues related to the operation of VAT. It provides an overview of the present tax system of India. More specifically, it traces the efforts made by the Central and State Governments in India to rationalize indirect tax system of the country in the direction of VAT. The book, drawing on the experience of other countries, evaluates various options available for a smooth switch over to VAT in India. The Countries considered for the purpose are: Brazil, Argentina, Mexico, Germany, and Canada.