write the relationship between indirect taxes and consumers
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It is the tax that is collected by the intermediary from the person who bears the ultimate economic burden of tax.It is tax levied on goods and services instead of profit and income.Consider an example
you go to retail store buy a product ,cost is 100 you pay 10% i.e is Rs10 as indirect tax to retailer .Retailer is intermediary and the consumer is the one who bears ultimate burden.
you go to retail store buy a product ,cost is 100 you pay 10% i.e is Rs10 as indirect tax to retailer .Retailer is intermediary and the consumer is the one who bears ultimate burden.
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Indirect tax is collected by government from people through household items buying. Indirect taxes are imposed on goods and services which are ultimately bought and used by people so whoever buys these products pays these taxes at a fix rate.
For example when we buy a soap from a shopkeeper it is written on the soap the manufacturing price of the company plus sales tax which collectively forms total price.
For example when we buy a soap from a shopkeeper it is written on the soap the manufacturing price of the company plus sales tax which collectively forms total price.
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