New Enroll for RBI, PFRDA & NABARD Intro Class! April 18 at 9:15 PM

    Question

    Which of the following is true about sales tax and

    VAT?
    A Both the taxes are under union list. Correct Answer Incorrect Answer
    B Sales tax is under union list and VAT is under state list. Correct Answer Incorrect Answer
    C Sales tax is under state list and VAT is under concurrent list. Correct Answer Incorrect Answer
    D Both the taxes are under concurrent list. Correct Answer Incorrect Answer

    Solution

    Sales tax was under the state list before the introduction of Value Added Tax (VAT). With the implementation of VAT, it falls under the concurrent list, which means both the central and state governments have the authority to levy and administer it. On the other hand, the sales tax continues to be levied and administered solely by the state governments.

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