pyq/2011/prelims/16

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 the 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