Multiple Choice Questions on The sales tax you pay while purchasing a toothpaste is a ........ for UPSC Civil Services Examination (General Studies) Preparation

Tax System

Economic Affairs

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    The sales tax you pay while purchasing a toothpaste is a

    This questions was previously asked in
    UPSC CSP Previous Year Paper (2014)

    Tax imposed by the Central Government

    Incorrect Answer

    Tax imposed by the central Government but collected by the State Government.

    Incorrect Answer

    Tax imposed by the State Government but collected by the Central Government.

    Incorrect Answer

    Tax imposed and collected by the State Government.

    Correct Answer
    Explanation:

    Before 2005, the tax that was levied by the state on the sale of various products was known as the sales tax.. Sale tax was a tax levied and collected by the State. The power to impose taxes on 'sale of purchase of goods other than newspaper' belongs to State (Entry list 54, State II)


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