Read the following statements - Assertion (A) and Reason (R):
Assertion: Indirect taxes are inconvenient to realise.
Reasoning: Indirect taxes are included in prices of goods and services and collected directly at stores.
From the given alternatives choose the correct one:
Answer & explanation
Correct answer: option 4
The correct answer is Option 4: Assertion (A) is false but Reason (R) is true.
Assertion: Indirect taxes are inconvenient to realise. This is incorrect. Indirect taxes are convenient to realise since they are included in prices of goods and services. State authorities find it convenient to levy indirect taxes because they are collected directly at the stores/factories which helps in saving a lot of time and effort.
Reasoning: Indirect taxes are included in prices of goods and services and collected directly at stores. This is correct.