Which one of the following is the correct statements? Service tax is a/an
- Adirect tax levied by the Central Government.
- Bindirect tax levied by the Central GovernmentCorrect
- Cdirect tax levied by the State Government
- Dindirect tax levied by the State Government
Explanation
Service tax is classified as an indirect tax because the burden of the tax is shifted from the service provider to the consumer. It was introduced in India in 1994 and was historically levied and collected by the Central Government under the authority of the Finance Act. While it has now been subsumed into the Goods and Services Tax, it remains defined as a central indirect tax in the context of this question. Therefore, option B is the correct statement.
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