Concept:Indirect taxes are levied on goods and services, not on income or profit. The tax burden can be shifted from one person to another, ultimately falling on the final consumer.
Key Fact:Excise Duty is an indirect tax imposed on the manufacture or production of goods within India.
Explanation:In an indirect tax, the person who pays the tax to the government is different from the person who bears the burden. For example, a manufacturer collects excise duty from the buyer and then pays it to the government. The tax is then passed along the supply chain until the final consumer bears the cost. Since the implementation of GST on 1 July 2017, many indirect taxes were merged, but excise duty still applies to specific items like petroleum products and tobacco. In contrast, Income Tax, Corporation Tax, and Wealth Tax are direct taxes paid directly by the individual or organisation on whom they are imposed, and the burden cannot be shifted.
Answer:C. Excise Duty