The sales tax you pay while purchasing a toothpaste is a

examrobotsa's picture

Submitted by examrobotsa on

Q: 27 (IAS/2014)
The sales tax you pay while purchasing a toothpaste is a

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,74,129,21,80,28,74

keywords: 

{'sales tax': [0, 0, 0, 1], 'tax': [0, 0, 0, 1], 'toothpaste': [0, 0, 1, 0], 'central government': [1, 0, 0, 1], 'government': [5, 0, 0, 1], 'state government': [0, 0, 1, 0]}

The sales tax on toothpaste is levied by the state government but collected by the state government or its authorized agency. Sales tax is a form of indirect tax which is imposed on the sale of goods by the state government. The tax rate may vary depending on the state and the type of goods being sold. The seller collects the tax amount from the buyer at the time of sale and remits it to the state government. Hence, the sales tax on toothpaste is imposed and collected by the state government.