Among the following taxes which is not considered as a direct tax?

Question

Question

This question was previously asked in

TNPSC Group 4 Official Paper 2012 (Held on: 07 Jul 2012)

Answer 1

The correct answer is Sales tax.

Key Points

Direct Taxes -
- The tax that is directly paid to the Government, is directly imposed on the taxpayer and the liability of tax cannot be passed on to other taxpayers.
- Some of the examples of Direct taxes are Income-tax, Corporate tax, Minimum Alternate Tax, Dividend Distribution Tax, Securities Transaction Tax, Capital gains Tax .etc.
Indirect Taxes -
- Indirect Tax is a tax imposed on an individual or entity which is passed on to other individuals.
- The is imposed on products or services which are used by the customer.
- Common examples of indirect taxes are Goods and services taxes, excise duties, sales tax, etc.