SSC Economics Sample Paper NCERT Sample Paper-6

  • question_answer
    Consider the following taxes:
    1. Corporation tax
    2. Customs duty
    3. Wealth tax
    4. Excise duty
    Which of these is/are indirect taxes?

    A)  1 only 

    B)  1 and 3 only

    C)  2 and 4 only    

    D)  2 and 3 only

    Correct Answer: C

    Solution :

    [c] An indirect tax is a tax collected by an intermediary (such as a retail store) from the person who bears the ultimate economic burden of the tax (such as the consumer). The intermediary later files a tax return and forwards the tax proceeds to government with the return. For eg: Service Tax is levied on Services, Excise Duty is levied on Manufacturing, Customs Duty is levied on Import of Goods etc.

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