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The correct answer is option 3 - Uttar Pradesh. VAT, which stands for Value Added Tax, is a type of indirect tax levied on the sale of goods and services. It is a multi-stage tax system where taxes are collected at each stage of the supply chain, from the manufacturer to the consumer.
Option 1 - Gujarat: Gujarat was one of the early adopters of VAT in India. It introduced VAT on April 1, 2006. Therefore, it is not the latest state to introduce VAT.
Option 2 - Puducherry: Puducherry, also known as Pondicherry, is a union territory in India. It adopted VAT on January 1, 2007. Therefore, it is not the latest state/UT to introduce VAT.
Option 3 - Uttar Pradesh: Uttar Pradesh is the correct answer. It introduced VAT on January 1, 2008. It was one of the later states/UTs to adopt VAT in India.
Option 4 - Tamil Nadu: Tamil Nadu was one of the early adopters of VAT in India. It introduced VAT on January 1, 2007. Therefore, it is not the latest state/UT to introduce VAT.
Based on the information provided, the correct