Multiple choice

Which of the following taxes cannot be paid, if no expenditure is incurred?

  1. Municipal Tax

  2. Corporate Tax

  3. Income Tax

  4. Sales Tax
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

It is sales tax. The sales tax is paid at the point of sale of a commodity. It is to be paid only if expenditure is incurred on the purchase of a commodity or goods otherwise not. Hence, sales tax cannot be paid, if no expenditure is incurred.

Keep practicing — related questions