QUESTION

Easy

Economy

Prelims 2011

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

Select an option to attempt

Explanation

A Value Added Tax (VAT) is indeed a multi-point destination-based system of taxation, which means it is levied at each stage of the production and distribution process, and the tax is ultimately borne by the final consumer.

The implementation of VAT is primarily the responsibility of the state governments in India. While the central government provides the legal and policy framework, the state governments are responsible for the actual implementation, administration, and collection of VAT within their respective states.

Therefore, it is not accurate to say that the State Governments are only facilitators for its successful implementation.

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