Question : Which of the following is not an example of direct tax?
Option 1: property tax
Option 2: tax on assets and gift to the government
Option 3: service tax
Option 4: income tax
Answer (1)
25th Jan, 2024
Correct Answer: service tax
Solution : (c) Service tax
Service tax is not an example of a direct tax. Service tax is a form of indirect tax that is levied on the provision of specific services. It is typically imposed on the value-added by service providers and is ultimately passed on to the consumers of those services.
On the other hand, direct taxes are taxes that are directly imposed on individuals or entities based on their income, wealth, or assets.
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