Direct Vs. Indirect Tax – CA VGS Mani

Direct Vs. Indirect Tax – CA VGS Mani

Basis of Difference Direct Tax Indirect Tax
Levied on Persons for the income earned Goods and services
Payment of Tax Paid to Government directly by the person who is liable to pay tax Paid to Government by one person, but he recovers the same from another person.
Impact and Incidence of Tax It is on same person Incidence is on one person but impact is on another person (i.e. Shifting of Incidence)
Example Income Tax, Wealth Tax Central Sales Tax, Central Excise, Service Tax, Customs Law etc.
Supervision CBDT CBEC

 

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