Question : What is octroi?
Option 1: Tax
Option 2: Tax collection centre
Option 3: Tax processing centre
Option 4: Tax information centre
Correct Answer: Tax
Solution : The correct option is Tax .
An octroi is a specific form of local tax imposed on particular items upon their entry into a specific municipality or city. This form of indirect taxation is collected by Indian local governments to generate revenue for regional administration, funding municipal services, and infrastructure development. It is applied to goods being brought into the city.
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