Commodity Transaction Tax

The Commodity Transaction Tax (CTT) is a tax levied on the trading of commodities in India. The tax was introduced in the 2013-14 budget by the Government of India.

The CTT is levied at a rate of 0.01% of the value of the transaction. The tax is payable by both the buyer and the seller of the commodity.

The CTT is applicable to all commodities traded on recognized stock exchanges in India. The tax is not applicable to agricultural commodities.

Here are some MCQs on Commodity Transaction Tax:

1. What is the Commodity Transaction Tax (CTT)?
   • A tax levied on the trading of commodities in India
   • A tax levied on the trading of securities in India
   • A tax levied on the trading of foreign exchange in India
   • A tax levied on the trading of all assets in India
   • The correct answer is a tax levied on the trading of commodities in India.
2. What is the rate of CTT?
   • 0.01%
   • 0.02%
   • 0.03%
   • 0.04%
   • The correct answer is 0.01%. The rate of CTT is 0.01% of the value of the transaction.
3. What are the commodities that are exempt from CTT?
   • Agricultural commodities
   • Gold
   • Silver
   • Platinum
   • The correct answer is agricultural commodities. Agricultural commodities are exempt from CTT.