Q. With reference to the Commodities Transaction Tax (CTT) in India, consider the following statements:
1.CTT is levied on the sale of commodity derivatives such as futures and options traded on recognized exchanges.
2.It applies uniformly at 0.01% on all agricultural and non-agricultural commodities without any exemptions.
Which of the statements given above is/are correct?
Answer: A
Notes:
Explanation:
Statement 1: Correct. CTT is specifically levied on the taxable value of sales of commodity derivatives like futures and options on recognized exchanges, effective from July 1, 2013. Statement 2: Incorrect. The rate varies; for example, non-agricultural commodities like gold and silver are taxed at 0.01%, while agricultural commodities are exempt from CTT.
