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Consider the following statements about Agriculture Infrastructure and Development Cess
1.It was introduced in the Union Budget 2020-21.
2.It is a tax that the government imposes on the commercial production of agricultural produce.
Choose the correct statements:
  • a)
    1 only 
  • b)
    2 only 
  • c)
    Both 1 and 2 
  • d)
    Neither 1 nor 2
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements about Agriculture Infrastructure and...
Explanation:


Introduction to Agriculture Infrastructure and Development Cess:

The Agriculture Infrastructure and Development Cess was not introduced in the Union Budget 2020-21. It is important to note that this statement is incorrect.

Understanding the Cess:

The correct statement is that the Agriculture Infrastructure and Development Cess is a tax that the government imposes on the commercial production of agricultural produce. This tax is levied to fund specific agricultural infrastructure and development projects in the country.

Correct Statement:

Therefore, the correct statement is option 2 only, which states that the Agriculture Infrastructure and Development Cess is a tax imposed on the commercial production of agricultural produce.
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Community Answer
Consider the following statements about Agriculture Infrastructure and...
  • It was introduced in the Union Budget 2021-22.
  • It is a tax that the government imposes on the commercial production of agricultural produce.
  • The cess is imposed at a specific rate on the value of these goods.
Purpose:
  • The primary objective of AIDC is to provide financial support for the development of agricultural infrastructure in India.
  • The funds collected through this cess will be utilized for the creation and maintenance of agricultural infrastructure such as cold storage facilities, warehouses, and market yards.
  • It aims to enhance the overall efficiency of the agricultural sector and improve farmers’ income.
  • Collection: The AIDC is collected by the government at the point of sale or import of the applicable goods.
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Consider the following statements about Agriculture Infrastructure and Development Cess1.It was introduced in the Union Budget 2020-21.2.It is a tax that the government imposes on the commercial production of agricultural produce.Choose the correct statements:a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'B'. Can you explain this answer?
Question Description
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