Direct & Indirect Tax

In India, there is no tax difference between earning a living and purchasing products and services. You can be an individual or a legal entity and are responsible for paying taxes. Taxes are a kind of mandatory fee and have a recurring nature. This money is paid to the state and central governments of India. Additionally, familiarizing yourself with aspects of taxation, such as the difference between direct and indirect taxes, is essential for taxing yourself. Taxes are the main source of income for the Indian government and contribute to the development of the Indian economy.

What is Direct tax !

Simply put, a direct tax is a tax that the taxpayer must pay directly to the authority that collects that tax. In this case, the taxpayer must bear the main burden of tax and this responsibility cannot be transferred to another company. The Central Board of Direct Taxes (CBDT) of India is responsible for the collection and administration of direct taxes. The Ministry of Finance is the governing body of the CBDT. Provides the Government of India with information relevant to the implementation of direct taxes.

Indirect tax

Direct taxes are levied on each taxpayer's income and profits, while indirect taxes are levied on products and services. These taxes are called "indirect taxes" because the taxpayer has to pay the indirect taxes to the Government of India through an intermediary. CBIC or Central Board of Customs and Indirect Taxes collects and administers this tax. This tax too he is administered by the Ministry of Finance as is the case with CBDT.