Which of the following is an example of indirect tax?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. G.S.T.
- An indirect tax is a tax that is not taken directly from the public but reaches the government indirectly.
- The state of consumption levied the taxes on imports, exports, production, etc., which is an indirect tax.
- Examples of indirect taxes are excise tax, VAT (value-added tax), service tax, custom duty, sales tax, entertainment tax, and securities transaction tax.