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Prime Minister Manmohan Singh recently in a meeting
expressed his desire that an early and smooth Value Added
Tax (VAT) is very much needed in the country. How the
introduction of VAT will be helpful for a country like
India?A) VAT will avoid cascading of taxes.B) VAT is
expected to enhance revenues in the medium term.C) Some
State Governments may have to lose a substantial amount of
Sales Tax as the Centre will have a greater share in taxes,
but the same will be compensated later on by providing
subsidies on certain items.Which of these statements is/are
true?
(1) Only A
(2) Only B
(3) Only A & B
(4) Only C
(5) A, B and C
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Answer Posted / avb
A&B
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