Identify the sequence of implementation of the following taxes. I.Land revenue II.Sales tax III.MODVAT IV.Service tax

Question

Accepted Answer

Step-by-step explanation:

1. Land revenue (I) — the oldest form of taxation in the subcontinent, dating back to pre-colonial and colonial periods, so implemented first.

2. Sales tax (II) — provincial/state sales taxes existed before independence and the Central Sales Tax Act was enacted in 1956; clearly introduced long before the modern excise/VAT adjustments and service levies.

3. MODVAT (III) — the Modified Value Added Tax scheme for excise duty (MODVAT) was introduced in the 1980s (around 1986) to allow set-off of input duties.

4. Service tax (IV) — introduced by the Central Government in India in 1994 as a tax on specified services.

Thus the chronological order is $I\rightarrow II\rightarrow III\rightarrow IV$, which corresponds to option (4) (mapped to choice "d").

FINAL_ANSWER: d

Answer

Answer

Answer