Final answer:
The VAT accuracy can be checked via direct extraction, random sampling, or field manipulation, which involve different methods of reviewing financial records or manipulating system variables to ensure correct VAT application.
Step-by-step explanation:
The accuracy of the Value Added Tax (VAT) levied on inter-state and intra-state sales can potentially be checked using methods such as direct extraction, random sampling, or field manipulation. While 'direct extraction' involves pulling data directly from financial records or databases to check for discrepancies, 'random sampling' means selecting a subset of transactions randomly to verify the VAT applied is correct. On the other hand, 'field manipulation' could signify the use of techniques to test the system by changing variables to ensure the VAT is being calculated accurately within the system.
It's imperative to understand the distinction between inter-state and intra-state VAT applications, as they refer to the sales made within one state and those across state boundaries, respectively. This can have differing implications on how VAT is administered and enforced. Moreover, understanding the concepts of tariffs and the value chain is also essential as they relate to the broader framework of tax policies and their impact on goods' journey from production to the end consumer.