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Railways Sample Paper RRBs Assistant Loco Pilot and Technician CBT STAGE-I Sample Paper-11

  • question_answer
    A tax which is paid by the person on whom the tax is incident is called a

    A)  Local tax

    B)  indirect tax

    C)  Direct tax         

    D)  rate

    Correct Answer: C

    Solution :

    Direct tax is a tax, such as income tax, which is levied on the income or profits of the person who pays it, rather than on goods or services. Direct taxes are different from indirect taxes, where the tax is levied on one entity, such as a seller, and paid by another, such as a sales tax paid by the buyer in a retail setting.


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