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Different direct tax and indirect tax

bimlesh mishra (1 Points)

27 April 2017

what is direct tax and indirect tax.

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3 Replies

maity vicky (--) (56 Points)
Replied 28 April 2017

Direct tax :- the tax which is leaved directly to a person,

eg :- Income tax-----> from your salary , employer deduct tds .

Indirect tax :- the tax which is leaved indirectly to a person

eg:- vat, service tax-----> if a person is going to and hotel and if you have seen the bill properly they haved added vat for food and service tax for the service which you have recived their.

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Mukesh Kumar (Accounts Manager) (1466 Points)
Replied 28 April 2017

Dear Sir , ,,,,,,,,,,,,,,,1 direct tax: means which tax assessee deposit to direct to state or central govt. or govt. collect direct from assesses. Like as income tax ,wealth tax ,corporate tax ,,,,,,,,,,,,,,,, 2 Indirect tax: means which tax assessee do not deposit to direct to state or central govt. or govt. and paid tax through other assesses like ,retailer , dealer • Like as CST, Vat, service tax, ED,

CA Naman Garg (Practicing CA) (86 Points)
Replied 28 April 2017

dear bimlesh sir,

direct tax i.e. Income Tax is tax in which person(assessee) have to bear.

indirect tax i.e. VAT , CST, Service Tax etc (or later it will be GST) are taxes consumer have to bear ultimatly.

burden to bear direct tax cannot be shifted to any other person and on other hand burden of indirect tax is shifted toward consumer.

For example:

1. Direct Tax:- Bimlesh earn 10,00,000/- p.a. u have to pay Income tax (ultimatly u have to bear).

2. indirect tax:- bimlesh purchases goods as a business man worth 1,00,000/- and pays VAT @ 12.5% i.e. 12,500/-. Bimlesh will collect the tax from customer and will deposit the balance amount to govt.