Question

Which one of the following does not mainly form a part of Tax Revenue of State Governments in India?
1. Land Revenue
2. Registration Fee
3. Customs Duty
4. Commercial Tax

Answer 1

Correct Answer - Option 3 : Customs Duty

The correct answer is Customs Duty.

• Customs duty refers to the tax imposed on goods when they are transported across international borders.
• In simple terms, it is the tax that is levied on the import and export of goods.
• The central government uses this duty to raise its revenues, safeguard domestic industries, and regulate the movement of goods.
• Customs duty in India is defined under the Customs Act, 1962, and all matters related to it fall under the Central Board of Excise & Customs (CBEC).
• Types of custom duty
  • Basic Customs Duty (BCD)
  • Countervailing Duty (CVD)
  • Additional Customs Duty or Special CVD
  • Protective Duty
  • Anti-dumping Duty

• Taxes imposed by Central Government include Income tax, Custom Duty, Excise Duty, Corporation Tax.
• Taxes imposed by State Government include Electricity Duty, Value Added Tax (VAT), Sales Tax, Entertainment Tax, Toll Road Tax, Land Revenue, Registration Fee.
• India has two types of taxes, namely Direct Tax and Indirect Tax.​

Direct tax	Indirect tax
Income Tax Gift Tax Wealth Tax Capital Gains Tax Securities Transaction Tax Corporate Tax	Sales Tax Service Tax Goods and Service Tax Value Added Tax (VAT) Customs Duty Toll Tax