Question

Indirect tax means -

• A. There is no direct relationship between the tax payer and the government
• B. Direct relationship between the 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

Answer 1

Answer:

A. There is no direct relationship between the tax payer and the government

Indirect tax is the tax levied on the consumption of goods and services. It is not directly levied on the income of a person. Instead, he/she has to pay the tax along with the price of goods or services bought by the seller.