UPSC Prelims 2011 · Question 86 of 100

UPSC Prelims 2011 question on Value Added Tax Features

Which one of the following is not a feature of “Value Added Tax”?

  1. It is a multi-point destination-based system of taxation
  2. It is a tax levied on value addition at each stage of transaction in the production-distribution chain
  3. It is a tax on the final consumption of goods or services and must ultimately be borne by the consumer
  4. It is basically subject of the Central Government and the State Governments are only a facilitator for its successful implementation
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Answer: D. It is basically subject of the Central Government and the State Governments are only a facilitator for its successful implementation

VAT is implemented by State Governments and is not solely a Central Government subject.

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