Question

Entertainment tax is an indirect tax because:

[0.80 marks]

• A. It is borne by one person, but the liability to deposit is of the other person.
• B. It is borne and deposited by the same person.
• C. It neither creates liability nor reduces assets.
• D. Creates liability in terms of repayment of tax.

Answer 1

The correct option is A It is borne by one person, but the liability to deposit is of the other person.

Entertainment tax is an indirect tax because it is borne by one person who is availing the services; but a liability to deposit is of the other person who is providing entertainment services.