taxes types, methods & budgeting process section 6 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (d)

As per the FRBM Act 2003, Central Government debt includes the following:

Total outstanding liabilities of the Central Government on the security of Consolidated Fund of India, including external debt. (This is also called Public Debt)

The outstanding liabilities in the Public Account of India

Such financial liabilities of any corporate or other entity owned or controlled by the Central Government, which the government is to repay or service from the Annual Financial Statement.

(This is also called off-budget liabilities, explained later)

Answer: (b)

The Goods and Services Tax (GST) is a Value Added Tax (VAT) replacing all indirect taxes levied on goods and services by the Indian Central and State governments.

India is a federal republic, and the GST is thus implemented concurrently by the central and state governments as the Central GST and the State GST respectively.

Exports will be zero-rated and imports will be levied the same taxes as domestic goods and services adhering to the destination principle.

Answer: (b)

Roughly 80% comes from the individual income tax and the payroll taxes that fund the social insurance programmes.

Another 11% comes from corporate income tax and the rest is a form of a mixed course.