Which of the following is not a Direct Tax? (a) Gift tax (b) Wealth tax (c) Sales tax (d) Estate duty

By Ritesh|Updated : November 15th, 2022

Sales tax is not a direct tax. A direct tax is one that the individuals or organisations subject to it pay directly to the government. Direct taxes include wealth taxes, income taxes, gift taxes, and property taxes. Under the Goods and Services Tax, only indirect taxes like sales tax, excise duty, and customs duty would be eliminated. No changes will be made to direct taxes. When a product is sold to a buyer, the government levies sales tax (abbreviated as ST). This tax will be collected by the shopkeeper and paid to the government. As a result, it is added to the bill after being charged on the item's selling price.

  • Sales tax = Tax% of Bill Amount
  • Total Bill = Cost of the Item + Sales Tax

Direct tax

A direct tax is one that an individual or organisation pays directly to the body that is enforcing it. Direct taxes are non-transferable to another person or entity. The required tax payment shall be made by the person or entity upon whom the tax is imposed.

  • Levying and collecting direct taxes as well as creating various direct tax policies are tasks that fall within the purview of the Central Board of Direct Taxes.
  • A taxpayer may pay a direct tax to the government for a number of different reasons. Examples include real estate taxes, personal property taxes, income taxes, asset taxes, FBT, gift taxes, capital gains taxes, etc.

Summary:

Which of the following is not a Direct Tax?(a) Gift tax(b) Wealth tax(c) Sales tax(d) Estate duty

Sales taxes are not direct levies. Since direct taxes cut into the profit on booked entries, many businesses began offering their employees a range of incentives while keeping those costs in line with their input costs.

Comments

write a comment

CDS & Defence Exams

CDSCAPFAFCATTA ExamACC ExamOther ExamsPracticePreparation

Follow us for latest updates