Which of the following is NOT an example of Indirect Tax?
Show answer & explanation
Correct answer: A
Explanation
Correct Answer:
Option 1: Corporate Tax
Explanation:
Corporate Tax is a direct tax that companies pay directly to the government on their profits. The burden of this tax cannot be shifted to any other individual.
In contrast, Service Tax, Sales Tax, and Entertainment Tax are indirect taxes, the burden of which falls upon consumers.
Additional Facts:
Option 1: Correct Answer.
Option 2: An indirect tax.
Option 3: An indirect tax.
Option 4: An indirect tax.
Potential Questions for Upcoming Exams:
Question: What is GST?
Answer: An indirect tax.
Question: What is Income Tax?
Answer: A direct tax.
Question: Who prepares the Budget?
Answer: The Finance Minister.
Question: What is a Tax?
Answer: Government revenue.