CMA Intermediate · Direct and Indirect Taxation · Concept of Indirect Taxes
Which of the following is an example of an indirect tax levied on goods when they enter India from outside the country?
Basic customs duty is the indirect tax charged on goods imported into India. It is collected from the importer at the time of import and recovered through the price. TDS on salary and advance tax are only ways of collecting direct income tax.
- ABasic customs dutyCorrect
- BSecurities transaction tax on equity delivery trades
- CTax deducted at source on salary
- DAdvance tax paid by a company
Explanation
Basic customs duty is levied under the Customs Act on goods imported into India and is an indirect tax passed on in the price. TDS on salary and advance tax are mechanisms for collecting income tax, a direct tax. Securities transaction tax is not a tax on import of goods.
Did you get it right without looking?
One question tells you little. A timed set on Concept of Indirect Taxes shows your real accuracy, how long you take and where you lose marks.
More Concept of Indirect Taxes questions
- Under the constitutional scheme after the introduction of GST, who has the exclusive power to make laws on GST where the supply of goods or …
- In the voting at the GST Council, the Union Government's vote carries a weightage and the States together carry a weightage. A decision requ…
- A manufacturer sells goods for Rs 1,00,000 (excluding tax) under a regime where tax is levied on the value of each sale, with credit allowed…
- Which of the following is an indirect tax in India?
- Which of the following statements about the classification of taxes in India is correct?
- Under the constitutional scheme in India, which indirect tax is levied by the Union Government on inter-State supply of goods and services?