Concepts of VAT- Quiz to Check your knowledge!
Value added tax commonly known as VAT is a simple concept of taxation yet effective and efficient over previous sales tax system.VAT system is more transparent, uniform and less prone to tax evasion VAT is a consumption tax because it is borne ultimately by the final consumer. VAT is not a charge or burden on manufacturers. It is charged as a percentage of price, which means that the actual tax burden is visible at each stage in the production and distribution chain.
Here is a quiz to check your knowledge on concepts of VAT system!
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Question 1 of 10
1. Question1 points
VAT is multipoint tax.Correct
VAT is multipoint tax levied on every addition of value in sale transaction.Incorrect
Question 2 of 10
2. Question1 points
What is the rate of VAT for precious and semiprecious metals?Correct
1% is the rate of VAT for precious and semiprecious metals.Incorrect
Question 3 of 10
3. Question1 points
VAT is not applicable on following productsCorrect
Products like above are out of ambit of VAT.Incorrect
Question 4 of 10
4. Question1 points
VAT is applicable on sale transaction which is/areCorrect
VAT is applicable on intra state sale transactions.Incorrect
Question 5 of 10
5. Question1 points
VAT is levied atCorrect
VAT is levied at every point of sale on the value addition made.Incorrect
Question 6 of 10
6. Question1 points
VAT is caculated onCorrect
VAT is calculated only on addition made from previous transaction.Incorrect
Question 7 of 10
7. Question1 points
Rates of VAT areCorrect
There are four uniform VAT rates.Incorrect
Question 8 of 10
8. Question1 points
Input VAT credit is available on inter-state purchases.Correct
Input credit is not available for inter state purchases.Incorrect
Question 9 of 10
9. Question1 points
Which of the following tax is paid by the dealer on his local purchases of business inputs?Correct
First Point Tax tax is paid by the dealer on his local purchases of business inputs.Incorrect
Question 10 of 10
10. Question1 points
VAT eliminates cascading effect.Correct
Since VAT is levied only on vlaue addition made in a transation,, it avoids cascading effect.Incorrect