Question

How will the improvement in the direct tax collections be sustainable according to the passage?

Q: Answer-How will the improvement in the direct tax collections be sustainable according to the passage?

It is clearly mentioned in the passage that the improvement will be sustainable only if the government makes productive use of the audit trails created by the goods and services tax that allows manufacturers to claim credit for the taxes paid on inputs across the production and income chain to generate a unified base of tax potential that can be tapped.

A If the tax authorities diligently follow the audit trails.

B If the government makes productive use of the audit trails created by the goods and services tax — that allows manufacturers to claim credit for the taxes paid on inputs across the production and income chain — to generate a unified base of tax potential that can be tapped.

C By tracking how much a company has paid and how much is the actual value addition that has been made.

D Data thrown up by GST should become the starting point now to tap the potential income-tax base

E None of these

Practice Next