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VAT is imposed:
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- Directly on Consumer
- On first stage of production
- On final stage of production
- On all stages between production and sale
- Directly on Consumer
Correct Option: D
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. Valueadded taxation in India was introduced as an indirect value added tax (VAT) into the Indian taxation system from 1 April 2005.
