Question

What is the chief source of the Government revenue levied across states by the Central government?

• A. Central excise
• B. Sales tax
• C. Value added tax
• D. None of these

Answer 1

The correct option is A Central excise

Central Excise duty is an indirect tax levied on those goods which are manufactured in India and are meant for home consumption. The taxable event is 'manufacture' and the liability of central excise duty arises as soon as the goods are manufactured. Central Excise duty is an indirect tax levied on goods manufactured in India. Excisable goods have been defined as those, which have been specified in the Central Excise Tariff Act as being subjected to the duty of excise.