Question

Which of these is a Direct Tax item?

• A. Customs Duty
• B. Excise Duty
• C. Service Tax
• D. Wealth Tax

Answer 1

Answer: (D)

Wealth Tax

A direct tax is one that the taxpayer pays directly to the government. These taxes cannot be shifted to any other person or group.

Customs Duty :

Customs duty is a form of indirect tax which is imposed at the time of both import and export of goods and services.

Excise Duty :

Excise duty is a form of tax imposed on goods for their production, licensing and sale.

Excise Duty is a form of indirect tax which is generally collected by a retailer or an intermediary from its consumers and then paid to the government.

Service Tax :

Service tax was an indirect tax levied by the government on services offered by service providers.

Wealth Tax :

It is a Direct Tax. The Wealth Tax is taxation related to the net wealth of an individual or a company.

Wealth tax is imposed on the richer section of the society. The intention of doing so is to bring parity among-st the taxpayers.

$\therefore$ Wealth Tax is a Direct Tax