Which of the following tax are imposed on goods imported into and exported out of India?
Show answer & explanation
Correct answer: B
Explanation
The correct answer option is (Option 2): Customs Duty.
Explanation:
- Customs Duty is a tax levied on goods that are traded across international borders. Simply put, when a good is imported into India or exported out of India, the government collects a customs duty on it.
Key Points:
- Objective: Its primary objective is to protect domestic industries, regulate trade, and generate revenue for the government.
- Types: It is of two types—Import Duty and Export Duty. In India, the majority of revenue is derived from import duties.
- Administration: In India, it is administered by the 'Central Board of Indirect Taxes and Customs' (CBIC).
Analysis of Other Options:
- Excise Duty: This tax is levied on the 'production or manufacture' of goods within the country. (For example: Excise duty is still levied by the State/Centre on alcohol and petroleum products).
- Property Tax: This is a direct tax levied by local bodies (such as municipal corporations) on the owners of immovable property (such as houses and land).
- Estate Duty: This was a tax levied on inherited property after a person's death; it has since been abolished in India.
Important Questions for Upcoming Examinations:
Question: Under which Act is Customs Duty levied and regulated in India?
Answer: The Customs Act, 1962.
Question: Which goods remain under the purview of Excise Duty following the introduction of GST?
Answer: Petroleum products and alcohol for human consumption.
Question: Which type of tax is levied directly on a consumer's income or property?
Answer: Direct Tax.