Question

is sales tax a direct or indirect expense..?​

Answer 1

Indirect Expense

Explanation:

• Sales tax is the tax which is paid to the governing body for the sales of the goods as well as services. Mostly the laws allow or permit the seller for collecting the funds for the tax from the customer during the or at the time of purchase.

• Direct tax is the tax which allow the government in order to collect the taxes from the customer directly whereas the indirect tax allow the government to have assured and stable returns from every member of the society.

• And the sales tax is the indirect expense because the sales tax is related to selling of the product and does not involve the manufacturing of the product.

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