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UPSC 2011: Which one of the following is not a feature of “Value Added Tax”?
(a)It is a multi-point destination-based system of taxation
(b)It is a tax levied on value addition at each stage of transaction in the production-distribution chain
(c)It is a tax on the final consumption of goods or services and must ultimately be borne by the consumer
(d)It is basically a subject of the Central Government and the State Governments are only a facilitator for its successful implementation
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Not attemptedCorrect Answer: (d) It is basically a subject of the Central Government and the State Governments are only a facilitator for its successful implementation
VAT is a multi-point, destination-based levy collected on value added at every stage and ultimately borne by the final consumer. It is imposed under the States’ power over ‘sale of goods’ (Entry 54, State List); the Centre’s role is mainly facilitative. Hence statement (d) is not a feature of VAT. ([testbook.com](https://testbook.com/question-answer/which-one-of-the-following-is-not-a-feature-of-qu--601fd36a98d5b9c5eeb0a18a?utm_source=openai))
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Frequently Asked Questions
What is the correct answer to this UPSC 2011 Indian Economy question?▼
The correct answer is option (d): It is basically a subject of the Central Government and the State Governments are only a facilitator for its successful implementation. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Taxation question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2011, GS Paper 1, as Question 16. It falls under Indian Economy > Taxation.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from Taxation?▼
UPSC has asked 19 questions from Taxation (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.