Correct Option
Option (d) is not a feature of Value Added Tax (VAT). In India, prior to the implementation of Goods and Services Tax (GST), VAT was primarily a state subject. State governments were empowered to levy and collect VAT under Entry 54 of the State List of the Seventh Schedule of the Constitution. The Central Government's role was largely facilitative, providing model laws and guidelines, rather than being the primary implementing authority.
Incorrect Options
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Option (a): VAT is a multi-point destination-based system of taxation. It is levied at various stages of production and distribution, and the tax accrues to the state where the goods or services are finally consumed.
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Option (b): VAT is a tax levied on the value addition at each stage of transaction in the production and distribution chain. This means tax is paid only on the incremental value added by each entity, not on the total turnover at each stage.
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Option (c): VAT is fundamentally a tax on the final consumption of goods or services. While collected at multiple stages, the input tax credit mechanism ensures that the tax burden is ultimately borne by the final consumer, making it an indirect consumption tax.