Multiple choice

CENVAT is associated with

  1. rate of Income Tax

  2. rate of Indirect Tax

  3. rate of Direct Tax

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

CENVAT (Central Value Added Tax) is a form of indirect tax in India that allows manufacturers to claim credit for taxes paid on inputs. It replaced the earlier MODVAT system and applies to excise duties and service taxes. Income tax is a direct tax, not indirect, and CENVAT specifically deals with indirect taxation on goods and services.

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