tax preparation - Wikitechy https://www.wikitechy.com/interview-questions/tag/tax-preparation/ Interview Questions Wed, 08 Sep 2021 06:49:15 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 https://www.wikitechy.com/interview-questions/wp-content/uploads/2025/10/cropped-wikitechy-icon-32x32.png tax preparation - Wikitechy https://www.wikitechy.com/interview-questions/tag/tax-preparation/ 32 32 What is Tax ? https://www.wikitechy.com/interview-questions/accounting/what-is-tax/ https://www.wikitechy.com/interview-questions/accounting/what-is-tax/#respond Wed, 04 Aug 2021 05:54:13 +0000 https://www.wikitechy.com/interview-questions/?p=1271
  • Tax is nothing but it is a charge made by government on the goods, on travelling, medicine etc., that is a sort of income to the government. These money is used for developing purpose.
  • The purpose of taxation is to finance government expenditure.
  • One of the most important uses of taxes is to finance public goods and services, such as street lighting and street cleaning.
  • Since public goods and services do not allow a non-payer to be excluded, or allow exclusion by a consumer, there cannot be a market in the good or service, and so they need to be provided by the government or a quasi-government agency, which tend to finance themselves largely through taxes.
  • There are two types of tax,
    • Direct Tax
    • Indirect Tax

Direct Tax

  • If tax is levied directly on personal or corporate income, then it is a direct tax.

Indirect Tax

  • If tax is levied on the price of a good or service, then it is called an indirect tax.
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