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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...
  • 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.
Free Test
Community 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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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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