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Question : Which of the following is an example of an indirect tax?

Option 1: Property tax

Option 2: Income tax

Option 3: Sales tax

 

Option 4: Corporate tax


Team Careers360 14th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: Sales tax


Solution : The correct answer is (c). Sales tax

Sales tax is a type of tax imposed on the sale of goods and services. It is typically levied as a percentage of the purchase price and is added to the final cost paid by the consumer.

Indirect taxes are taxes that are not directly imposed on individuals or entities but are instead levied on goods, services, or transactions. These taxes are usually passed on to the consumer by the seller or service provider. Sales tax is an example of an indirect tax because the burden of the tax is ultimately borne by the consumer, even though it is collected by the seller or service provider and remitted to the government.

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