Question

Consider the following taxes:

1. Corporation tax

2. Customs duty

3. Wealth tax

4. Excise duty

Which of these is/are indirect taxes?

(a) 1 only (b) 2 and 4 (c) 1 and 3 (d) 2 and 3

Answer 1

(b) Indirect taxes are the charges that are levied on goods and services. Some of the significant indirect taxes include Value Added Tax, Central Sales Tax, Central Excise Duty, Customs Duty, stamp duties and expenditure tax. Property tax, Corporation tax and Wealth tax are examples of direct taxes.