Taxation

Explanation

Income from allied agricultural activities like poultry farming and wool rearing in rural areas is not completely exempt from tax in India. However, rural agricultural land is indeed not considered a capital asset under the provisions of the Income-tax Act, 1961.

Explanation

Indirect transfers refer to situations where shares are transferred, and their substantial value is derived from assets located in India. This scenario has been a topic of discussion in the media due to its implications for taxation and capital gains.

Explanation

Creation of black money in India leads to tax evasion, resulting in a significant loss of revenue to the State Exchequer. This loss affects the government's ability to fund essential public services and infrastructure development, thereby hindering the country's overall economic growth and welfare programs.

Explanation

In 2016, India implemented a 6% equalization tax on online advertisement services offered by non-resident entities through a separate legislation under the Finance Bill. This tax does not allow non-resident entities to claim a tax credit in their home country under the 'Double Taxation Avoidance Agreements'. Therefore, both statements 1 and 2 are incorrect.

Explanation

In the given list, cereal grains are exempt from GST. However, processed and canned foods like fish (#3) are taxable under GST. Therefore, the correct answer is option (c) - 1, 2, and 4 only.

Explanation

The equalization tax of 6% on online advertisement services by non-resident entities in India was implemented in 2016 through a separate legislation under the Finance Bill. This tax does not allow non-resident entities to claim a tax credit in their home country under Double Taxation Avoidance Agreements. Therefore, both statements are incorrect, making the correct answer (d) Neither 1 nor 2.

Explanation

The implementation of Goods and Services Tax (GST) in India is expected to bring several benefits. Firstly, it will replace multiple taxes levied by various authorities, creating a unified market within the country. Secondly, it may help in reducing the Current Account Deficit (CAD) and increasing foreign exchange reserves. Lastly, it has the potential to contribute to the growth and expansion of the Indian economy. However, it is important to note that under GST, exports will be rated as zero. While GST may not completely eliminate CAD or lead to a significant increase in the size of the economy, it still offers advantages in streamlining taxation and fostering economic development.

Explanation

Base Erosion and Profit Shifting (BEPS) is a tactic employed by multinational corporations to avoid paying taxes by moving their profits from high-tax countries to low-tax or tax-free jurisdictions. BEPS is designed to address the issue of tax evasion by multinational companies.

Explanation

When you buy toothpaste, the sales tax you pay is collected by the State Government. This tax is imposed and managed by the State Government as part of the Goods and Services Tax (GST) system.

Explanation

Capital gains can occur under two circumstances: when the value of a property increases naturally, or when the value of an investment, such as a painting, grows due to increased popularity. Therefore, option (b) 2 and 3 only is the correct answer.

Explanation

Value Added Tax (VAT) is a type of tax that is imposed on the value added at each stage of a transaction in the production and distribution chain. It is a multi-point destination-based system of taxation and is ultimately borne by the consumer. However, it is important to note that VAT is primarily under the jurisdiction of the central government, with state governments playing a supporting role in its implementation.

Explanation

In the past five years, the percentage of gross tax revenue from excise duty has decreased significantly in India. In 1992-93, excise duty contributed 41.3 percent to the total tax revenue, but by 2006-07, this had dropped to 25.1 percent.

Explanation

In India, taxes on transactions in Stock Exchanges and Futures Markets are imposed by the Union government. However, these taxes are collected by the States. The correct statement is that taxes are levied by the Union government only.

Explanation

In the given options, all three - Fringe Benefit Tax, Interest Tax, and Securities Transaction Tax - are examples of Direct Taxes. Fringe Benefit Tax was levied on most fringe benefits, while Securities Transaction Tax was applicable on taxable securities transactions. Interest Tax was a special tax imposed on accrued interest in specific cases.

Explanation

In the context of poverty planning, it is important to understand the nature of service tax. Service tax is classified as an indirect tax and is imposed by the Central Government. Indirect taxes are those that can be passed on to another party.

Explanation

The amalgamation of Global Trust Bank Ltd occurred with the Oriental Bank of Commerce on 14th August, 2004.

Explanation

The task force on direct taxes led by Dr. Vijay L. Kelkar in 2002 did not propose increasing the exemption limit of personal income to Rs. 1.20 lakh for widows. Instead, it recommended a higher exemption limit of Rs. 1.50 lakh for widows and senior citizens.

Explanation

The Kelkar proposals that have been in the spotlight lately pertain to recommendations for tax reforms. The Vijay Kelkar Committee on Direct Taxes initially presented its report in 2003.

Explanation

Indirect taxes are those imposed on goods and services rather than directly on individuals or companies. Examples of indirect taxes include Value Added Tax, Central Sales Tax, Central Excise Duty, Customs Duty, stamp duties, and expenditure tax. Direct taxes, on the other hand, are levied on individuals or corporations, such as Property tax, Corporation tax, and Wealth tax.

Explanation

The Standing Committee of State Finance Ministers proposed in January 2000 that all states should have consistent rates for the following: value-added tax, sales tax, stamp duty and registration fees, and agricultural income tax. The correct option among these is sales tax, which is a tax imposed on the purchase of specific goods and services.

Explanation

In India, income tax is imposed and gathered by the Union government, also known as the central government, and then shared between the Union and the states.

Explanation

Corporation tax is a direct tax imposed by the central government, and it is collected and utilized exclusively by the Union. This tax revenue cannot be allocated to the states.