Multiple choice

Which of the following statements are true?

  1. Excise duty is a tax on the sale, or production for sale, of goods produced within the country.
  2. Excise duty is an indirect tax.
  3. This tax is now known as the Central Value Added Tax (CENVAT).
  4. Central excise revenue is the biggest single source of revenue for the Government of India.

  1. Only 1, 2 and 3

  2. Only 1 and 2

  3. All 1, 2, 3 and 4

  4. Only 2, 3 and 4
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Statement 1 is wrong: Please note that Excise duty is not a tax on sale of goods but it is a tax on manufacture or production of goods for sale (in India). Rest of the three statements are perfectly correct. 

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