Question

Which are the different types of indirect taxes?

• A. Income Tax
• B. Excise Tax
• C. Water Tax
• D. Service Tax

Answer 1

Answer: (A), (B), (D)

The correct options are
A Income Tax
B Excise Tax
D Service Tax

Taxes which are not paid directly to the government are 'Indirect Taxes'.
Income Tax: This is the most important source of revenue for the Government which is collected from every citizen who is earning more than a minimum stipulated income annually.

Excise Tax: This tax is charged on some items which are manufactured in the country. This is collected by the Government.

Service Tax: Tax which is charged in Hotels, Cinema theatres, for service of Chartered Accountants, Telephone Bills, etc., come under service tax.
This tax is collected by the service provider from the user and deposited to the Government.