ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A tax is a compulsory fee or financial charge levied by a government on an individual or an organisation to raise revenue for public works. The collected amount is then used to fund different public expenditure programmes.

Detailed explanation-2: -A tax is a mandatory fee or financial charge levied by any government on an individual or an organization to collect revenue for public works providing the best facilities and infrastructure. The collected fund is then used to fund different public expenditure programs.

Detailed explanation-3: -Definition: Service tax is a tax levied by the government on service providers on certain service transactions, but is actually borne by the customers. It is categorized under Indirect Tax and came into existence under the Finance Act, 1994.

Detailed explanation-4: -The taxation system in India empowers the state governments to levy income tax on agricultural income, professional tax, value added tax (VAT), state excise duty, land revenue and stamp duty.

Detailed explanation-5: -A direct tax is a tax that a person or organization pays directly to the entity that imposed it. Examples include income tax, real property tax, personal property tax, and taxes on assets, all of which are paid by an individual taxpayer directly to the government.