VAT is imposed
(A) Directly on Consumer
(B) On first stage of production
(C) On final stage of production
(D) On all stages between production and sale
Correct Answer : On all stages between production and sale
Question Asked : SSC CHSL (10+2) LDC, DEO & PA/SA Exam 2015
Explanation : Value Added Tax (VAT) is imposed on the value added to each commodity by a firm during all stages of production and distribution. In simple terms, it is a fee assessed against businesses at each step of the production and distribution process, usually whenever a product is resold or value is added to it. Value-added taxation in India was introduced as an indirect value added tax (VAT) into the Indian taxation system from 1 April, 2005.
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