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Question No. 202Interactive Test Mode
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Q202. Which one of the following is the correct statement? Service tax is a/an:

Which one of the following is the correct statement? Service tax is a/an:

Select the correct option below (or cross out options to eliminate)

Official Answer Key & Detailed Solution

Ready to check the official UPSC Answer Key?

Click any option above to test yourself under exam conditions, or reveal the explanation directly.

Official UPSC Answer KeyUPSC Prelims 2006 • Indian Economy

Correct Answer: Option (B) — indirect tax levied by the Central Government.

Concept & Option Breakdown

Standard Reference Verified

Service tax was an indirect tax introduced by the Central Government under the Finance Act, 1994 (Entry 97/Entry 92C of the Union List). Its incidence was passed on from service providers to consumers. It was subsequently subsumed under the Goods and Services Tax (GST) regime in July 2017.

Elimination Heuristic & Exam Approach

Taxes on services and goods (like customs, central excise, service tax) are classic indirect taxes, historically levied by the Union (Central) Government.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2006 (Q202)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Fiscal Policy & Public Finance
Official Answer KeyOption (B) — (b) indirect tax levied by the Central Government.

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Frequently Asked Questions — UPSC Prelims 2006 Q202

What is the official answer for UPSC Prelims 2006 GS Paper I Question 202 (Indian Economy)?

The official UPSC answer key for this 2006 Indian Economy (Fiscal Policy & Public Finance) question is Option (B): "(b) indirect tax levied by the Central Government.". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2006 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Fiscal Policy & Public Finance". You can explore all repeated questions from Fiscal Policy & Public Finance in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Fiscal Policy & Public Finance UPSC Prelims question using option elimination?

Taxes on services and goods (like customs, central excise, service tax) are classic indirect taxes, historically levied by the Union (Central) Government.

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