Which of the following statements is true 1 MODVAT was introduced in India in 1986 on...........

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Which of the following statements is true

1. MODVAT was introduced in India in 1986 on the recommendation of the Jha Committee

2. CENVAT- A modified form of MODVAT involving Single rate of 16% introduced in the Budget 2000-2001

3. State governments have decided to introduce VAT at the retail stage from April 2006,

Choose your answer from the codes given below:

1, 2

1, 2 and 3

1, 3

2, 3

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Explanation:

All the statements are correct.

MODVAT is the abbreviated for modified value added tax. The modified value added tax scheme was introduced with effect from April 1 in the year 1986 as an improvement over the proforma Credit system which was in operation before the date.
CENVAT means Central Value Added Tax. CENVAT credit is a credit in respect of central excise on inputs purchased for the manufacture or duty paid in relation to the manufacture of the final product.