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Banking services offered to units set up in Special Economic Zones (SEZs) have been exempted from paying . . . . . . . . tax.
Answer & Solution
Correct Answer:
Option
C
Special Economic Zones (SEZs): These are special areas within a country that have different economic regulations compared to the rest of the country. They are created to promote exports and attract investment.
The question is about a tax exemption specifically for banking services provided to businesses in these SEZs.
Service Tax: This is a tax levied by the government on services provided.
The government, to encourage economic activity in SEZs, often provides exemptions from certain taxes.
In this case, banking services offered to units in SEZs are exempt from Service Tax.
Other Taxes:
Capital Gains Tax: This is a tax on the profit earned from selling an asset, like property or shares.
Income Tax: This is a tax on an individual's or a company's income.
Therefore, the exemption applies specifically to Service Tax, making Option C the right answer.
The question is about a tax exemption specifically for banking services provided to businesses in these SEZs.
Service Tax: This is a tax levied by the government on services provided.
The government, to encourage economic activity in SEZs, often provides exemptions from certain taxes.
In this case, banking services offered to units in SEZs are exempt from Service Tax.
Other Taxes:
Capital Gains Tax: This is a tax on the profit earned from selling an asset, like property or shares.
Income Tax: This is a tax on an individual's or a company's income.
Therefore, the exemption applies specifically to Service Tax, making Option C the right answer.
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LoginBanking services offered to units set up in Special Economic Zones (SEZs) were specifically exempted from paying Service Tax for their authorized operations.