Question

Which one of the following is not a tax/duty levied by the Government of India?
1. Service Tax
2. Education
3. Custom Duty
4. Toll Tax

Answer 1

Correct Answer - Option 4 : Toll Tax

The correct answer is Toll Tax.

• Toll Tax:
  • The Toll taxes in India undergo a revision each year from April 1 which is based on the policies of the National Highways Fee (Determination of Rates and Collection Rules, 2008).
  • The Toll Tax policy is based on the National Highways Act, 1956 (48 of 1956) provision and on the National Highways Fee (Determination of Rates and Collection) Rules, 2008.
  • Until the year 2016, there were 390 toll tax collection fee plazas across the national highways in India, based on the current policy literature any road with 6 lanes with 4 lanes already running is tolled even if the highway is not fully completed.
  • However, as of 2016, there is no separate authority running independently for this taxation.

• Service Tax:
  • Service tax is a tax levied by the government on service providers on certain service transactions but is actually borne by the customers.
  • It is categorized under Indirect Tax and came into existence under the Finance Act, 1994.
  • In this case, the service provider pays the tax and recovers it from the customer.
  • Service Tax was earlier levied on a specified list of services, but in the 2012 budget, its scope was increased.
  • Services provided by air-conditioned restaurants and short-term accommodation provided by hotels, inns, etc. were also included in the list of services.
• Custom Duty:
  • Customs Duty refers to the tax that is imposed on the transportation of goods across international borders.
  • It is a kind of indirect tax that is levied by the government on the imports and exports of goods.
  • Companies that are into the export-import business need to abide by these regulations and pay the customs duty as required.
  • Put differently, the customs duty is a kind of fee that is collected by the customs authorities for the movement of goods and services to and from that country.
  • The tax that is levied for the import of products is referred to as import duty, while the tax levied on the goods that are exported to some other country is known as export duty.
  • The customs duty is calculated based on various factors such as the following:
    • The place of acquisition of the good.
    • The place where the goods were made.
    • The material of the goods.
    • Weight and dimensions of the good etc.