Direct tax mening in cma intermediate

Hello aspirant

The government of India levies two types of taxes on the citizens of India. Direct tax and Indirect tax. Indirect taxes are usually transferred to another person after being initially levied as a direct tax. Common example of indirect tax include Goods And Services Tax ( GST) and VAT . GST is levied on the manufacturers or service provider and a direct tax, which is then transferred to the consumer when it is a part of the final price of goods or services., Thus making it an indirect tax for consumer

Direct tax is a type of tax where the incidence and impact of taxation fall on the same entity.

In case of direct tax, the burden can't be shifted by the taxpayer to someone else. There are largely taxes on income or wealth. Income tax, corporation tax , property tax, inheritance tax and gift tax are examples of direct tax.

One has to pay direct tax directly to the government