Examine the following statements, and choose the option that suits the best.
Statement 1: The sales tax regime was very complicated with different sales tax rates for the same products in different states.
Statement 2: A state VAT required one product and one tax rate across all states.
Statement -1 is true, statement -2 is true;
statement -2 is NOT the correct explanation for statement -1.
Statement -1 is true, statement -2 is true;
statement -2 is the correct explanation for statement -1.
Statement -1 is true,
statement -2 is false.
Statement -1 is false,
statement -2 is true.
Identify the wrong statement.
a) State VAT is not a new tax but only a change in the way of collecting tax from the final stage to the value addition stage.
b) This allows for the set-off of duties from the tax payable but against original invoices/ challans of the tax paid on the inputs purchased.
c) The state VAT has helped in checking tax evasion by introducing a bill culture.
Match the following
| List I | List II |
| a) 270 mass-consumed goods | i.) 4 per cent state VAT |
| b) 280 goods | ii.) 12.5 per cent uniform VAT |
| c) gold and silver ornaments | iii.) 1 per cent |
a-i,b-ii,c-iii
a-ii,b-iii,c-i
a-iii,b-ii,c-i
a-ii,b-i,c-iii
