INDIRECT AND DIRECT TAXES

Direct taxes are the kind of taxes whose burden is borne by the person on whom the tax is levied

while indirect taxes are the kind of taxes the burden

of which is always born by the end consumers and

not the seller/importer of the supply (the entities on

whom the tax is levied). The distinction between

the two is laid down and guarded by the statutes

and any shift of burden from the purchaser to the

manufacturer or vice versa is deemed to be

unlawful and is guarded by the statutes.

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