Consider the following:

1. MAT
2. Fringe Benefit Tax
3. Banking Cash Withdrawal Tax
4. Value Added Tax

Which of these is/are presumptive tax(es)?

The concept of presumptive tax covers a wide variety of alternative means for determining the tax base, ranging from methods of reconstructing income based on administrative practice, which can be rebutted by the taxpayer, to true minimum taxes with tax bases specified in legislation. Statement 1: It is correct. An indirect attack through presumptive taxation may become more successful than direct attempts to reduce concessions. Such indirect methods also reduce tax evasion. Further, transfer pricing practices by multinationals to optimise on cross-country differences in corporate tax rates become less profitable. A minimum alternate tax (MAT) that targets the average tax liability across tax payers is a method that allows keeping the marginal tax rate low. Statements 2 and 3: They are correct. As per Dr. Kelkar Committee's report, the Finance Minister has introduced two controversial provisions levying separate tax on Fringe Benefits to employees and Banking Cash Transactions. Statement 4: VAT is not a presumptive tax. Hence, the correct option is 3.