Chartered Accountant (CA) Question:
Download Questions PDF

Explain What is the incidence of tax?


Tax incidence can be divided into-

1. Formal incidence: the party liable to the tax
2. Informal incidence: party, who actually pays the tax

The tax incidence is decided by the elasticity of demand and supply for a good or service.

Download Chartered Accountant (CA) Interview Questions And Answers PDF

Previous QuestionNext Question
Explain Why is economics seen as a social science?Explain Trade discount, discount and rebate?