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{"id":1271,"date":"2021-08-04T05:54:13","date_gmt":"2021-08-04T05:54:13","guid":{"rendered":"https:\/\/www.wikitechy.com\/interview-questions\/?p=1271"},"modified":"2021-09-08T06:49:15","modified_gmt":"2021-09-08T06:49:15","slug":"what-is-tax","status":"publish","type":"post","link":"https:\/\/www.wikitechy.com\/interview-questions\/accounting\/what-is-tax\/","title":{"rendered":"What is Tax ?"},"content":{"rendered":"<div class=\"TextHeading\" style=\"text-align: justify;\"><\/div>\n<ul style=\"text-align: justify;\">\n<li>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.<\/li>\n<li>The purpose of taxation is to finance government expenditure.<\/li>\n<li>One of the most important uses of taxes is to finance public goods and services, such as street lighting and street cleaning.<\/li>\n<li>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.<\/li>\n<li>There are two types of tax,\n<ul>\n<li>Direct Tax<\/li>\n<li>Indirect Tax<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<div class=\"Content\" style=\"text-align: justify;\">\n<div class=\"hddn\"><\/div>\n<\/div>\n<div class=\"Content\" style=\"text-align: justify;\">\n<div class=\"hddn\"><\/div>\n<\/div>\n<div class=\"TextHeading\" style=\"text-align: justify;\">\n<div class=\"hddn\">\n<h2 id=\"direct-tax\" class=\"color-blue\">Direct Tax<\/h2>\n<\/div>\n<\/div>\n<div class=\"Content\" style=\"text-align: justify;\">\n<div class=\"hddn\">\n<ul>\n<li>If tax is levied directly on personal or corporate income, then it is a direct tax.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<div class=\"TextHeading\" style=\"text-align: justify;\">\n<div class=\"hddn\">\n<h2 id=\"indirect-tax\" class=\"color-blue\">Indirect Tax<\/h2>\n<\/div>\n<\/div>\n<div class=\"Content\">\n<div class=\"hddn\">\n<ul>\n<li style=\"text-align: justify;\">If tax is levied on the price of a good or service, then it is called an indirect tax.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Answer : Tax is nothing but it is a charge made by government on the 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