- The retail price of diesel (and petrol) in India is a composite of several components. - These components typically include: 1. Base Fuel Price This is the cost of the fuel at the refinery gate, including the cost of crude oil, refining charges, and freight. This is represented by "Fuel component". 2. Central Excise Duty A tax levied by the central government.
In the current pricing policy, the price of diesel in India consists of
Asked in UPSC CAPF 2013 · Topic: Fiscal Policy & Revenue (Sources of Government Revenue: Tax and Non-Tax Revenue)
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Answer: B. Fuel component + Excise duty + Sales VAT + Dealer's commission
More Economic Development questions
- State VAT/Sales Tax A tax levied by the respective state governments, which is usually ad valorem (a percentage of the price). 4. Dealer's Commission The margin paid to the fuel pump owners. 5. Other minor charges (like pollution cess, etc.) may also be included. - Customs duty is levied on imported goods. While crude oil is imported (and customs duty applies), the refined product (diesel) sold domestically faces Central Excise and State VAT. If refined diesel is imported, customs duty would apply, but Excise and VAT are the standard components levied on domestic sales alongside the base price and dealer commission. - Option B (Fuel component + Excise duty + Sales VAT + Dealer's commission) represents the standard and most significant components of the retail diesel price in India. - Option A includes Customs duty along with Excise and VAT, which is less typical for the main pricing structure of domestically supplied fuel compared to Excise and VAT. 271. The following are some important sources of tax revenue for the Union Government in India : 1. Corporation tax 2. Customs 3. Union excise duties 4. Service tax Arrange the aforesaid sources of revenue in ascending order as per the Budget Estimates for 2013-14.
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