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Questions
Define Indirect tax
What are indirect taxes?
What is meant by an indirect tax?
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Solution 1
Indirect taxes are those taxes in which the burden of tax shifts from the payer to the bearer. For example, in the case of sales tax, the seller is liable to pay the tax; however, the burden of bearing the tax falls on the customer. The seller collects the tax from the customer and pays it to the government.
Solution 2
According to Prof. Dalton, An indirect tax is imposed on one person but paid partly or wholly by another
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