UPSC Exam > UPSC Questions > Consider the following statements.1.Commoditi...
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Consider the following statements.
1.Commodities Transaction Tax (CTT) is a tax similar to Securities Transaction Tax (STT),
2. It is levied in India on transactions done on domestic commodity derivatives exchanges.
Which of these statements is/are incorrect?
- a)1 Only
- b)2 Only
- c)Both 1 and 2
- d)None of them
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements.1.Commodities Transaction Tax (CTT) ...
Explanation:
Statement 1: Commodities Transaction Tax (CTT) is a tax similar to Securities Transaction Tax (STT).
Statement 2: It is levied in India on transactions done on domestic commodity derivatives exchanges.
Analysis:
The given statements are related to the Commodities Transaction Tax (CTT) in India. Let's analyze each statement to determine their correctness.
Statement 1: Commodities Transaction Tax (CTT) is a tax similar to Securities Transaction Tax (STT).
Securities Transaction Tax (STT) is a tax levied on the purchase or sale of securities listed on recognized stock exchanges in India. It is aimed at taxing the transactions in the stock market. On the other hand, Commodities Transaction Tax (CTT) is a tax levied on commodity derivatives transactions. While both taxes are aimed at taxing financial transactions, they are not similar in terms of the assets they are applied to. Therefore, statement 1 is incorrect.
Statement 2: It is levied in India on transactions done on domestic commodity derivatives exchanges.
Commodities Transaction Tax (CTT) was introduced in India in 2013 and is levied on transactions done on domestic commodity derivatives exchanges. The tax is applicable to both buyers and sellers in commodity derivatives transactions. Therefore, statement 2 is correct.
Conclusion:
Based on the analysis of the given statements, it can be concluded that statement 1 is incorrect, and statement 2 is correct. Therefore, the incorrect statement is option 'a) 1 Only'.
Statement 1: Commodities Transaction Tax (CTT) is a tax similar to Securities Transaction Tax (STT).
Statement 2: It is levied in India on transactions done on domestic commodity derivatives exchanges.
Analysis:
The given statements are related to the Commodities Transaction Tax (CTT) in India. Let's analyze each statement to determine their correctness.
Statement 1: Commodities Transaction Tax (CTT) is a tax similar to Securities Transaction Tax (STT).
Securities Transaction Tax (STT) is a tax levied on the purchase or sale of securities listed on recognized stock exchanges in India. It is aimed at taxing the transactions in the stock market. On the other hand, Commodities Transaction Tax (CTT) is a tax levied on commodity derivatives transactions. While both taxes are aimed at taxing financial transactions, they are not similar in terms of the assets they are applied to. Therefore, statement 1 is incorrect.
Statement 2: It is levied in India on transactions done on domestic commodity derivatives exchanges.
Commodities Transaction Tax (CTT) was introduced in India in 2013 and is levied on transactions done on domestic commodity derivatives exchanges. The tax is applicable to both buyers and sellers in commodity derivatives transactions. Therefore, statement 2 is correct.
Conclusion:
Based on the analysis of the given statements, it can be concluded that statement 1 is incorrect, and statement 2 is correct. Therefore, the incorrect statement is option 'a) 1 Only'.
Community Answer
Consider the following statements.1.Commodities Transaction Tax (CTT) ...
- Commodities Transaction Tax (CTT) is a tax similar to Securities Transaction Tax (STT), proposed to be levied in India, on transactions done on the domestic commodity derivatives exchanges.
- Globally, commodity derivatives are also considered as financial contracts. Hence CTT can also be considered as a type of financial transaction tax'.
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Consider the following statements.1.Commodities Transaction Tax (CTT) is a tax similar to Securities Transaction Tax (STT),2. It is levied in India on transactions done on domestic commodity derivatives exchanges.Which of these statements is/are incorrect?a)1 Onlyb)2 Onlyc)Both 1 and 2d)None of themCorrect answer is option 'D'. Can you explain this answer?
Question Description
Consider the following statements.1.Commodities Transaction Tax (CTT) is a tax similar to Securities Transaction Tax (STT),2. It is levied in India on transactions done on domestic commodity derivatives exchanges.Which of these statements is/are incorrect?a)1 Onlyb)2 Onlyc)Both 1 and 2d)None of themCorrect answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements.1.Commodities Transaction Tax (CTT) is a tax similar to Securities Transaction Tax (STT),2. It is levied in India on transactions done on domestic commodity derivatives exchanges.Which of these statements is/are incorrect?a)1 Onlyb)2 Onlyc)Both 1 and 2d)None of themCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements.1.Commodities Transaction Tax (CTT) is a tax similar to Securities Transaction Tax (STT),2. It is levied in India on transactions done on domestic commodity derivatives exchanges.Which of these statements is/are incorrect?a)1 Onlyb)2 Onlyc)Both 1 and 2d)None of themCorrect answer is option 'D'. Can you explain this answer?.
Consider the following statements.1.Commodities Transaction Tax (CTT) is a tax similar to Securities Transaction Tax (STT),2. It is levied in India on transactions done on domestic commodity derivatives exchanges.Which of these statements is/are incorrect?a)1 Onlyb)2 Onlyc)Both 1 and 2d)None of themCorrect answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements.1.Commodities Transaction Tax (CTT) is a tax similar to Securities Transaction Tax (STT),2. It is levied in India on transactions done on domestic commodity derivatives exchanges.Which of these statements is/are incorrect?a)1 Onlyb)2 Onlyc)Both 1 and 2d)None of themCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements.1.Commodities Transaction Tax (CTT) is a tax similar to Securities Transaction Tax (STT),2. It is levied in India on transactions done on domestic commodity derivatives exchanges.Which of these statements is/are incorrect?a)1 Onlyb)2 Onlyc)Both 1 and 2d)None of themCorrect answer is option 'D'. Can you explain this answer?.
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