In 1963, the Central Revenue Board was divided into ‘Central Excise and Custom Duty Board’ and ‘Central Direct Tax Board’.

Option (3) is correct.

Once enacted, the DTC will replace archaic Income Tax Act, 1961. However, many provisions in Income Tax Act will be a part of DTC as well.

In India, taxes on income other than agriculture income fall within the jurisdiction of Union List, but taxes on agricultural income fall within the jurisdiction of State List.

In India, service tax was first introduced in the year 1994.

Sales Tax is the principal source of revenue to the State Government in India.

 Ad valorem is a tax on price.

Former Finance Minister Pranab Mukherjee unveiled a three-year plan for moving to a single-rate goods and services tax (GST) regime of 16 per cent for the Centre as well as the states. He suggested, the Centre to adopt a three-rate formula. While Mukherjee proposed that the rate of taxation for services be fixed at 8 per cent, a dual-rate regime for goods was recommended at the meeting of the empowered committee of state finance ministers. The Centre plans to keep a lower rate of 6 per cent for certain goods and maintain a standard rate of 10 per cent in the first year. In case the states agree to the formula, the standard GST rate had been 20 per cent since the states and the Centre will levy 10 per cent each on goods. For products which attracted a lower rate, the total GST burden had been 12 per cent, assuming that the Centre and the states agreed to levy 6 per cent each on these products.

Correct Answer: II and III only

One of the major recommendations given by Kelkar Task Force (KTF) was the implementation of a single union GST. It was contradictory to the recommendations given by most of the scholars and those given by the Joint Working Group.

 Option (1) is correct.