Multiple Choice Questions on In context of Indian Economy Sales Tax is a an........ for UPSC Civil Services Examination (General Studies) Preparation

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Multiple Choice Questions

In context of Indian Economy Sales Tax is a an........

Economic Affairs Tax System
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     In context of Indian Economy Sales Tax is a/an

    Direct tax levied by the Central Government

    Incorrect Answer

    Indirect tax levied by the Central Government

    Incorrect Answer

    Direct tax levied by the State Government

    Incorrect Answer

    Indirect tax levied by the State Government 

    Correct Answer
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    Explanation:

    The Sales Tax is an indirect tax levied by the state government on sale of goods.
    The students should not confuse it with central sales tax which is levied by the union government on inter state sale of goods

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