Question

The additional excise duty levied on mill made cloth is known as

• A. Service tax
• B. Sales tax
• C. Thrift fund
• D. Cess fund

Answer 1

Answer:

D. Cess fund

Cess Fund:

• It is an additional excise duty on mill made cloth was levied and this is known as Cess fund.
• Fact finding committee was appointed by British Government in 1940
• It is earlier known as Handloom Development Fund which was started in 1940 on the recommendation of fact finding committee
• Cess fund is created by the Govt. from 1953
• This fund is used for the development and promotion of handloom and khadi industry
• The rebate to the consumers is given by the government out of this fund.
• Cess fund Policy enables the handloom industry to compete with mill made clothes.