Liberalisation, Privatisation And Globalisation : An Appraisal

Question 89

Distinguish between Direct Taxes and Indirect Taxes.


These are differences between Direct Taxes and Indirect Taxes:

Base of Difference

Direct Taxes

Indirect Taxes

1. Base of Taxation

2. Scope

3. Flexibility

4. Equity

5. Nature of Taxes

6. Certainty

7. Possibility of Tax evasion

1. The base of direct tax is income.

2. The scope of direct taxes is limited.

3. Direct taxes are less flexible.

4. Direct taxes have the feature of equity.

5. Direct taxes are progressive.

6. Direct taxes are certain.

7. There is more possibility of tax-evasion.

1. The base of indirect taxes is expenditures.

2. The scope of indirect taxes is unlimited.

3. Indirect taxes are more flexible.

4. Indirect taxes lack the element of equity.

5. Indirect taxes are proportional

6. Indirect taxes are uncertain.

7. There is less possibility of tax-evasion.

Question 90

What is Laissez faire system?


Laissez faire system refers to a system in which there is no intervent by the state in the functioning of an economy.

Question 91

What do you mean by "Navratan's" in the context of public sector enterprise in India?


In the context of public sector enterprises in India 'Navratans' refers to nine such industries which are compared with nine courties in the court of king Vikramaditya who were men of eminence and rare wisdom.

Question 92

What does foreign direct investment (FDI) refers to?


Foreign direct investment (FDI) refers to investment by foreigners in the terms of their business establishments in India. It implies ownership and control of business.

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