Lesson -1 on Tax

Question: What is Tax?

Answer:

Tax is a financial charge or other levy imposed on an individual or a legal entity by a state or a functional equivalent of a state.

Question: What is Tariff?

Answer:

Tariff is a charge for movement of goods through a political border. Tariff is also name as Custom Duty.

Question: What is VAT?

Answer:

VAT stands for Value Added Tax. It is also known as “Goods and Services Tax” (GST)

Question: What is Withholding Tax?

Answer:

Withholding Tax is a tax deduction at source, required to be remitted by the employer to the tax authorities on behalf of the employee

Question: What is Asymmetric Taxes?

Answer:

A situation wherein participants in a transaction have different net tax rates.

Question: What is Capital Tax?

Answer:

Capital Tax is a tax based on capital holdings, as opposed to a capital gains tax.

Question: What is Deferment of Tax?

Answer :

Deferment of Tax is the postponement of tax payments from the current year to a later year.

Question: What is Direct Tax?

Answer :

Direct Tax is the taxes imposed on income, capital gains and net worth. Gift tax, death duties and property tax are also considered direct taxes.

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