Is there any way to flag or suggest edit or remove a tag created by other user if that tag is found to be not useful or ambiguous?
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If you mean in one question, you can suggest your own edit, remove the tag but explain carefully why you're doing it. If three 2K users will agree, the tag will then be removed.
If you mean tag in general i.e. from all questions, post here on Meta explaining why, tag your request with burninate-request and wait for other users input on this matter.
There is no need to flag tags. If you want to improve it's tag-wiki then you can suggest tag-wiki from it's info tab. If you think the tag is not useful or it is ambiguous or it is not suitable for the site then just post a question on it's Meta site to request for the removal.