Multiple choice

MODVAT stands for

  1. Modified Value Added Tax

  2. Modern Value Added Tax

  3. Modified Value Tax

  4. None of these

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

MODVAT stands for Modified Value Added Tax, which was a tax system in India that allowed manufacturers to claim tax credit on inputs. Option B uses 'Modern' instead of 'Modified' which is incorrect. Option C is incomplete as it omits 'Added'.