Question

The maximum amount of the total revenue earned by the Govt of India comes from ______________.

• A. Income Tax
• B. Customs Duty
• C. Excise Duty
• D. Value Added Tax

Answer 1

The correct option is B Customs Duty

Customs Duty refers to the tax imposed on the goods when they are transported across the international borders. Custom duty in India is defined under the Customs Act, 1962 and enables the government to levy duty on exports and imports, prohibit export and import of goods, procedures for importing/exporting and offences, penalties etc. All matters related to custom duty fall under the Central Board of Excise & Customs (CBEC).