Question

Which of the following taxes in India is collected by Panchayats ?
1. Sales Tax
2. Custom Tax
3. Land Revenue
4. Tax on local fairs

Answer 1

Correct Answer - Option 4 : Tax on local fairs

The correct answer is Tax on local fairs.

• Tax on local fairs taxes collected by Panchayats in India.
• The sources of income of the village Panchayat (gram Panchayat) may be divided into some broad headings. Each Gram Panchayat has its own fund.
• The Panchayati Raj generally refers to the local self-government of villages in rural India as opposed to urban and suburban municipalities, this system was introduced by a constitutional amendment in 1992.

• Taxes in Village Panchayats are:
  • ​House Tax.
  • Profession Tax.
  • Vehicle Tax.
  • Tax on agricultural land and for specific purposes.
  • Water Tax.

Tax	Details
Sales Tax	The indirect tax imposed on the selling and purchasing of goods within India is referred to as Sales Tax. It is an additional amount paid over and above the base value of the product being purchased.
Custom Tax	Customs duty is a form of indirect tax which is imposed at the time of both import and export of goods and services.
Land Revenue	Land revenue is tax or revenue levied on agricultural production on land. It is either collected as a percentage of the share of the total crop or a monetary value is fixed on the land to be paid by the farmer.