Which of the following is NOT an indirect tax?

The correct answer is a Wealth tax.

Key Points

Direct Taxes:

• The tax that is directly paid to the Government, is directly imposed on the taxpayer and the liability of tax cannot be passed on to other taxpayers.  
• Some examples of Direct taxes are Income-tax, Wealth tax, Corporate tax, Minimum Alternate Tax, Dividend Distribution Tax, Securities Transaction Tax, Capital gains Tax, etc.  

Indirect Taxes:

• An indirect Tax is a tax imposed on an individual or entity which is passed on to other individuals.
• The is imposed on products or services which are used by the customer.
• Common examples of indirect taxes are Goods and services taxes, excise duties, sales tax, etc. ​

Additional Information

• The tax levied on all services is called Service Tax.
• The tax levied on the sale of goods under indirect tax is called sales tax.
• The tax levied on the products made in the country is called Excise Duty.
• Types of Indirect Taxes -
  • Sales Tax
  • Service Tax
  • Excise Duty
  • Professional Tax
  • Entertainment Tax
  • Stamp Duty
  • VAT Tax (VAT)
  • Toll Tax

Important Points

• GK Trick: Trick to remember Direct & Indirect Taxes
  Trick –– "Wepro, co, in (Direct Taxes)"
  • We- Wealth Tax
  • Pro- Property Tax
  • Co- Corporate Tax
  • In-Income Tax
  Trick –– "Excuse Me (Indirect Taxes)"
  • Ex- Excise tax
  • Cu- Custom tax
  • Se- Service tax
  • M- Market tax/vat
  • E- Entertainment tax