Question

Which of the following taxes is levied by the Gram Panchayats?
1. Sales Tax
2. Land Revenue Tax
3. Tax on Local Fairs
4. None of the above

Answer 1

Correct Answer - Option 3 : Tax on Local Fairs

The correct answer is Tax on Local Fairs.

•  Every village panchayat can levy taxes in its area. These taxes include-
  • Service tax at a rate fixed by the village panchayat.
  • Toll tax
  • Fee for Fairs organized in or around the village
  • Tax on agricultural land

• Panchayati Raj Institution came established with 73rd constitutional amendment act, 1992.
• It is a rural self-governing body.
• Committees related to Panchayats-
  • Balwant Rai Mehta (1957)
  • Ashok Mehta Committee (1977)
  • Hanumantha Rao Committee (1983)
  • G.V.K. Rao Committee (1985)
  • L.M.Singhvi Committee (1986)
  • P.K. Thungan Committee (1989)
  • Harlal Singh Kharra Committee (1990)
• Sales Tax is levied by State Government.