Which of the following tax is imposed by the state government *?
Explanation: Taxes imposed by the state government are; Sales Tax and VAT, Professional Tax, Luxury Tax, Entertainment Tax, Motor Vehicles Tax, Tax on Vehicles Entering State, Tax on Agricultural Income, Tax on Land and Buildings and Tax on Mineral Rights.
How do states raise taxes?
Taxes make up about half of state government revenue, with two-thirds of states’ total tax dollars coming from levies on personal income (36.5%) and general sales of goods and services (32.2%).
Correct Option: D. A sales tax is a consumption tax charged at the point of purchase for certain goods and services. The tax is usually set as a percentage by the government charging the tax. Sales tax can be levied either by the Central or State Government or Central Sales tax department.
Which tax is imposed by the central government but the state government collects it?
5. Which of the following tax is imposed by the Central Government but the state government collects it? Explanation: The right to impose stamp duty lies with Central Government, but the state government has the right to collect it.
What do state governments spend the most on?
State and local governments spend most of their resources on education, health, and social service programs. In 2018, about one-third of state and local spending went toward combined elementary and secondary education (21 percent) and higher education (9 percent).
The Centre earns money through several taxes, such as corporate tax, income tax, goods and services tax, Union excise duty and customs duty. A part of the taxes is shared with state governments. … As shown in the following chart, the Centre’s share of taxes to the GDP ratio stood at 7.2% of the GDP in 2016-17.
Initially, the Constitution provided for the sharing of only two Central taxes with States. Article 270 permitted mandatory sharing of the net proceeds of income tax levied and collected by the Union with the States. Such proceeds assigned to States did not form part of the Consolidated Fund of India.
Do we pay taxes to the government?
Why do we pay taxes? The simplest reason is that the municipal, state, and national governments implement tax laws, and taxpayers’ money pays for government services of all kinds.
Which taxes are taken by the Union government?
Central GST, Union Excise Duty on petroleum products & tobacco and Custom duties. Out of these, levy and collection of Union Excise Duty on products outside GST and Custom Duty is done solely by the Union Government. However, under the GST, both the Union and States have concurrent powers to levy and collect tax.
What is an example of indirect tax?
Indirect taxes are typically added to the prices of goods or services. Sales tax, value-added tax, excise tax, and customs duties are examples of indirect taxes.