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Tds

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Querist : Anonymous (Querist)
20 May 2012 whether TDS is Direct Tax or Indirect Tax?

please explain diffrence bitween Direct & indirect Taxes.
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CA Siddhartha Bhardwaj

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CA Siddhartha Bhardwaj (Expert)
21 May 2012 TDS is direct tax.

Direct tax is a tax in which the impact & incidence of tax is on the same person. That means that the person on whom tax is levied has to bear the burden of tax. He cannot pass on the burden.

Indirect tax is a tax in which the incidence is passed on to the buyer and the tax is finally borne by the ultimate consumer.
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