Question

what is octroi duty?

Answer 1

Octroi charges are levied by state governments when product enters the state. It is a charge for allowing transit of good through the jurisdiction. AnyOctroi charges asked by the Courier company is payable by the Customer. Courier company will collect the Octroiamount from the recipient at the time of delivery.

Answer 2

$\boxed{GOOD MORNING}$

• It is duty levied for allowing transit of goods through jurisdiction of a state.

• It is similar to toll tax in a sense that toll tax is charged for a particular road constructed by any player whereas octroi is charged by the state govt for all the roads and services that are taken by the transporter in that particular state.

• Also, it is included in the value of goods and the burden of octroi is ultimately borne by the consumer like any other indirect tax.

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