If indirect taxes are ₹720 crore and subsidies are ₹220 crore, what will be net indirect taxes?
Answer and explanation
Correct answer: ₹500 crore
Net indirect taxes are calculated by subtracting subsidies from indirect taxes: Net Indirect Taxes = Indirect Taxes − Subsidies. Thus, ₹720 crore − ₹220 crore = ₹500 crore. Option B is correct. Option C reports gross indirect taxes without deducting subsidies, while option D adds taxes and subsidies. Option A reflects an incorrect subtraction, so it cannot be selected.
Frequently asked questions
What is the correct answer to this question?
₹500 crore
Why is this the correct answer?
Net indirect taxes are calculated by subtracting subsidies from indirect taxes: Net Indirect Taxes = Indirect Taxes − Subsidies. Thus, ₹720 crore − ₹220 crore = ₹500 crore. Option B is correct. Option C reports gross indirect taxes without deducting subsidies, while option D adds taxes and subsidies. Option A reflects an incorrect subtraction, so it cannot be selected.
Which subject and chapter does this question cover?
This is a Class 12 Economics question. Chapter: National Income and Related Aggregates. Topic: Aggregates related to national income - Market price and factor cost.
