17-01-2014, 02:33 PM
Direct vs. Indirect Tax
Indirect Tax.ppt (Size: 141.5 KB / Downloads: 18)
We pay taxes when we earn, (Income Tax)
we pay taxes when we spend, (Sales Tax, Service Tax)
We pay taxes when we save, (Wealth Tax)
We pay taxes when we die !! (Estate Duty)
Nothing is certain in life except for death and taxes, with a difference that the later comes the first !!
Direct Taxes
Taxes are imposed on person.
E.g.- Income Tax, Property Tax etc.
Impact of Tax and Incidence of Tax is on the same person.
Coverage of direct tax is limited.
Tax collection is difficult
Indirect taxes
Taxes are imposed on goods and services
These are indirectly recovered from the person or property
E.g. – sales tax, excise duty etc.
Incidence and impact is on different persons
Coverage is vast (much more than direct taxes)