Tax Glossary Definition
A retail sales tax is a single-stage tax imposed on goods sold to end consumers, typically collected by retailers or other traders at the point of sale. It is not applied at multiple stages of production or distribution but only on the final sale to the consumer.
Example: If a retailer sells a television for ₹50,000 and the retail sales tax rate is 10%, the customer pays ₹55,000 in total — ₹50,000 for the TV and ₹5,000 as sales tax.
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