Question

Which one of the following taxes/cess is levied by states in India?

• A. Tax on motor vehicles
• B. Tax on hotels
• C. Educational cess
• D. Tax on wealth

Answer 1

The correct option is A Tax on motor vehicles

The Constitution of India provides for powers to state as well as central governments for the collection of taxes. The taxes that are levied and collected by the state governments are:
(i) Land Revenue
(ii) Taxes on Agricultural Income
(iii) Taxes on Land and Buildings
(iv) Taxes on Mineral Rights
(v) Taxes on Motor Vehicles
(vi) Stamp Duties
(vii) Taxes on Luxuries including entertainments, betting and gambling
(viii) Capitation Taxation.