State which amongst the following is not true about VAT ? Options: A . &nbspState have discretion to fix the rate of tax within the four rates prescribed B . &nbspAll States have uniform VAT for the same product C . &nbspIt will promote production efficiency of investments D . &nbspIt will make our exports more competitive

State which amongst the following is not true about VAT ?

Question

State which amongst the following is not true about VAT ?

Options:

A . State have discretion to fix the rate of tax within the four rates prescribed

B . All States have uniform VAT for the same product

C . It will promote production efficiency of investments

D . It will make our exports more competitive

Answer: Option D
Answer: (d)
A value-added tax (VAT) is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price.
From that of the seller, it is a tax only on the value added to a product, material, or service, from an accounting point of view, by this stage of its manufacture or distribution. Being a consumption tax, VAT is usually used as a replacement for sales tax.
Ultimately, it taxes the same people and businesses the same amounts of money, despite its internal mechanism being different. This means that, without special measures, goods that are imported from one country that does have VAT to another country that does not have VAT will be taxed twice.
The exporting country will charge VAT and the importing country will charge sales tax.

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