Question

Say true or false:

The service tax is an indirect tax.

• A. True
• B. False

Answer 1

The correct option is A True

An indirect tax (such as sales tax, per unit 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).

An indirect tax may increase the price of a good to raise the price of the products for the consumers.

So the statement is true