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Indirect tax means :
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- there is not direct relationship between the tax payer and the government.
- direct relationship between tax payer and the government.
- tax base is income
- the incidence and impact are on the same person on whom tax is imposed.
- there is not direct relationship between the tax payer and the government.
Correct Option: A
The term indirect tax has more than one meaning. In the colloquial sense, an indirect tax (such as sales tax, a specific 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). The intermediary later files a tax return and forwards the tax proceeds to government with the return. In this sense, the term indirect tax is contrasted with a direct tax which is collected directly by government from the persons (legal or natural) on which it is imposed.
