Q. MODVAT is different from VAT in the sense that: 1. under MODVAT, tax is levied only on value addition while under VAT, excise is imposed on final value and then rebate is given on inputs 2. MODVAT is only at the production stage while VAT extends both to production and distribution stage 3. under MODVAT, excise is levied on final value and then rebate is given on inputs while under VAT, tax is levied only on value addition 4. MODVAT implies rationalization of excise duty only while VAT implies rationalization of excise, sales and turnover taxes etc. also Choose correct answer from: (Solved)