1.

Distinguish between direct and indirect taxs.

Answer»

The differences between direct and indirect taxes are as follows:

Direct TaxIndirect Tax
  • It is that where incidence of tax and its impact fall on the same person.
  • It is the tax where incidence of tax and its impact fall on different persons.
  • It falls directly on individuals and firms.
  • It falls indirectly on individuals and firms.
  • Examples for direct tax are income tax, corporation tax, wealth tax, etc.
  • Examples for indirect tax are customs duty, sales tax, etc. and now goods and services tax (GST) has been introduced.



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