The liability to pay the tax and the actual burden of which of the following taxes lie on two different persons?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. Goods and Services Tax.
The liability to pay the tax and the actual burden of Goods and Services Tax (GST) often lie on two different persons. The seller or service provider is legally responsible for collecting and remitting GST to the government, but the actual burden of the tax is borne by the end consumer. In contrast, for taxes like Income Tax, Corporation Tax, and Capital Gains Tax, the person or entity liable to pay the tax also bears the burden directly.