Indirect tax means
(A) there is not direct relationship between the tax payer and the government.
(B) direct relationship between tax payer and the government.
(C) tax base is income
(D) the incidence and impact are on the same person on whom tax is imposed.
Correct Answer : there is not direct relationship between the tax payer and the government.
Question Asked : SSC Combined Graduate Level Prelim Exam 1999
Explanation : The term indirect tax has more than one meaning. In the colloquial sense, an indirect tax (such as sales tax, a specific tax, value added tax (VAT), or goods and services tax (GST)) is a tax collected by an intermediary (such as a retail store) from the person who bears the ultimate economic burden of the tax (such as the consumer). The intermediary later files a tax return and forwards the tax proceeds to government with the return. In this sense, the term indirect tax is contrasted with a direct tax which is collected directly by government from the persons (legal or natural) on which it is imposed.
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