Question

Which of the following taxes is/are NOT shared by the Central Government with the states?

• A. Customs duty
• B. Corporate tax
• C. Union excise duty
• D. Both (a) and (b)

Answer 1

Answer: (D)

Both (a) and (b)

Customs and corporate tax are not shared by the Centre with the states directly. Custom duty is a type of indirect tax that is levied on all the goods that are imported to the country as well as some goods exported from the country. The duty levied on the former is referred to as import duty while that on the latter is referred to as the export duty. A corporate tax is a levy placed on a firm's profit by the government. The money collected from corporate taxes is used for a nation's source of income.

Hence, D is the correct option.