Question
Which one of the following is not an example of indirect tax?
Answer: Option A
Answer: (a)
Expenditure tax is a taxation plan that replaces the income tax (a direct tax). Instead of applying a tax based on the income earned, tax is allocated based on the rate of spending.
This is different from a sales tax, which is applied at the time the goods or services are provided and is considered a consumption tax. The major benefit of this type of tax scheme is the removal of double taxation.
Was this answer helpful ?
Answer: (a)
Expenditure tax is a taxation plan that replaces the income tax (a direct tax). Instead of applying a tax based on the income earned, tax is allocated based on the rate of spending.
This is different from a sales tax, which is applied at the time the goods or services are provided and is considered a consumption tax. The major benefit of this type of tax scheme is the removal of double taxation.
Was this answer helpful ?
More Questions on This Topic :
Question 2. Indirect taxes by nature are
....
Question 8. VAT is imposed:
....
Question 10. Globalisation does not include....
Latest Videos
Latest Test Papers
Submit Solution