Which of the following is true about Value Added Tax (VAT) ? It is a consumption tax levied on value added to the product on every stage of its production. VAT is levied by the Union Govt. and only a small part goes to State Govts. The income tax on retailers is now decided on the basis of their VAT collection in a year.

• A. Only 1
• B. Only 2
• C. Only 3
• D. All 1, 2 and 3
• E. None of these