CAF-2 · Chapter 17 · Question 12 of 15
How is sales tax collected from retailers who do NOT fall into the Tier-1 category?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) C) Tax is charged through their monthly electricity bills at 5% (if the bill does not exceed Rs. 20,000) or 7.5% (if the bill exceeds Rs. 20,000).
Explanation
Tax shall be charged from retailers other than those falling in Tier-1 through their monthly electricity bills at 5% where the bill does not exceed Rs. 20,000, and at 7.5% where the bill exceeds Rs. 20,000.
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