Indirect Taxes and Their Problems

Q. Sales tax, excise duty, and customs duty are examples of ___________.

1. direct taxes
2. indirect taxes
3. export taxes
4. import taxes

Q. Match the type of indirect tax with what it is imposed on.

1. Purchase of products
2. Manufacturing
3. Imported goods
4. Services availed

Q. When you buy a gadget from the USA, what type of indirect tax do you pay to the government?

1. Sales tax
2. Excise duty
3. Customs duty
4. Service tax

Q. Identify the problems that the goods and services tax helped solve.

1. Difficulty in paying various tax to the government
2. Difficulty in managing all the different kinds of taxes
3. Increased final prices of goods and services
4. Decreased final prices of goods and services

Q. When we buy a packet of biscuits, we pay a certain amount of tax. However, the tax is actually imposed on the _________.

1. taxpayer
2. trader
3. consumer
4. government

Q. Identify the conditions in which indirect taxes will be imposed.

1. Television installation
2. Profits from a business
3. Imported clothes
4. Manufacture of soap

Q. Miss Catherine ordered raw cotton from New Zealand to manufacture cotton shirts in India and sell them in India and abroad.

Identify the indirect taxes that Miss Catherine will have to pay.

1. Excise duty on cotton imported, customs duty on shirts manufactured, and sales tax on shirts sold in India
2. Excise duty on shirts manufactured, customs duty on cotton imported, and sales tax on shirts sold in India
3. Excise duty on shirts sold in India, customs duty on shirts manufactured, and sales tax on shirts imported
4. Excise duty on shirts imported, customs duty on shirts sold in India, and sales tax on shirts manufactured