IDT MCQ — If there is a conflict between the policy provisions of the FTP and the prevailing tax laws (e.g., C

**If there is a conflict between the policy provisions of the FTP and the prevailing tax laws (e.g., Customs Tariff Act), which one prevails regarding the actual benefit of exemption?** A) The FTP provisions prevail as they are specific to trade. B) The decision of the DGFT is final and binding on tax authorities. C) The provisions of the Tax Laws and specific exemption notifications issued thereunder prevail. D) Both are applied concurrently with equal weightage. ✅ **Answer: (C) The provisions of the Tax Laws and specific exemption notifications issued thereunder prevail.** **FTP vs tax law — the tax law prevails for the actual benefit.** FTP provisions *per se* do not override tax laws. Exemptions announced in the FTP are given effect only through **notifications issued under the respective tax law (e.g., Customs Tariff Act)**, so the actual benefit depends on the language of those exemption notifications issued by CBIC. Hence the choice that **tax laws and their exemption notifications prevail** is correct. DGFT's decision is final only on interpretation of *policy/authorisation*, not on the tax exemption itself. _Practise 1000s more free CA Final MCQs 👉 https://conferenza.in/mcqs — and discuss your approach below._