what is the different betwwen direct taxes and indirect taxes???

Answer 1

The income tax and the sales tax are direct taxes. You see what you are paying. Indirect taxes are taxes paid by a business, you know that they are paying them but they are hidden in the cost of what you are buying.

Answer 2

Direct taxes are where the tax payer pays the tax. Sounds obvious. These are like income tax and sales tax.

Indirect taxes are taxes the tax payer pays but does not realize it. For example, levies paid on components of a product the consumer buys. Or manufacturers tax, or even property tax. These are added to the cost of the goods or service you buy.

Answer 3

DIRECT TAX is one paid directly to the government by the persons (legal or natural) on whom it is imposed (often accompanied by a tax return filed by the taxpayer). Examples include some income taxes, some corporate taxes, and transfer taxes such as estate (inheritance) tax and gift tax. In this sense, a direct tax is contrasted with an indirect tax or "collected" tax (such as sales tax or value added tax (VAT)); a "collected" tax is one which is collected by intermediaries who turn over the proceeds to the government and file the related tax return.


An INDIRECT TAX (such as sales tax, value added tax (VAT), or goods and services tax (GST)) is a tax collected by an intermediary (such as a retail store) from the person who bears the ultimate economic burden of the tax (such as the customer). The intermediary later files a tax return and forwards the tax proceeds to government with the return. In this sense, the term indirect tax is contrasted with a direct tax which is collected directly by government from the persons (legal or natural) on which it is imposed.