Direct & indirect tax

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pranali

pranali (Querist)
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22 January 2015 What is mean of direct & indirect tax?

pranali

pranali (Querist)
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22 January 2015 Please give me answer

CA Anjana Grover

CA Anjana Grover (Expert)
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22 January 2015 Direct Tax : Which is Basically on Income or wealth of a person(Such as Income tax & Wealth tax of Individual, Companies , Firms, HUF OR other form of Person). The collection of this kind of Tax is directly from the Person.

Indirect tax: Basically tax on Goods , Services , Manufacturing, Import & Export. Which is on the first instance collected from the Manufacturer, Exporter, Service Provider etc but ultimately recovered from the final consumers at the time of selling Goods & Service these taxes paid added to the cost of Goods & Services to determine the selling price.

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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22 January 2015 A Direct tax is a kind of charge, which is imposed directly on the taxpayer. The examples of direct tax include property tax and income tax. In India, all the direct tax related matters are taken care by the Central Board of Direct Taxes (CBDT)

a direct tax is levied by the government directly to the taxpayers, whereas the indirect tax (or collected tax) is collected by intermediaries, who eventually file tax returns and passes to the respective department. Examples of direct taxes include income taxes, some corporate taxes and transfer taxes. Examples of indirect taxes include Value Added Tax and Sales Tax.

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