Multiple choice

Which of the following is an example of Direct Tax?

  1. Octroi Tax

  2. Securities Transaction Tax

  3. Custom Duty

  4. Goods and Service Tax
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

It is an example of direct tax. The Securities Transaction Tax is the tax payable on the value of the taxable securities transaction. The tax is to be paid by the person who sells or purchases the securities and the burden of this tax cannot be shifted to any other person. Hence, it is an example of direct tax.

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