Question

Which of the following is a tax which can be collected only by the state?
1. Land Revenue
2. Custom duty
3. Surcharge on income tax
4. Tax on capital value of assets of individuals and companies

Answer 1

Correct Answer - Option 1 : Land Revenue

The correct answer is Land Revenue.

• Land Revenue is the tax that can be collected only by the state.
• The tax is levied and collected by the State government.
• The tax base is the market value of the land.
• The market value, once determined, is applicable for a minimum period of 5 years and a maximum of 10 years.
• The rate of tax varies from 0.5 percent to 1 percent depending on the value of the land.

• The customs duty is a kind of tax levied on imports by customs authorities of a particular country to raise revenue and protect the domestic industry from competitors abroad.
• The custom duty falls under the Central Board of Indirect Taxes which is responsible for all kinds of indirect taxes.