Distinguish between the following concept:
Direct tax and Indirect tax.
|Direct tax||Indirect tax|
|It is levied on income and activities conducted.||It is levied on products or services.|
|The burden of tax cannot be shifted in the case of direct tax.||The burden of tax shifted for indirect taxes.|
|It is paid for directly by the person concerned.||It is paid by one person but he recovers the same from another person i.e. person who actually bears the tax ultimate consumer.|
|It is paid after the income reaches the hands of the taxpayer||It is paid before goods/service reaches the taxpayer.|
|Tax collection is difficult.||Tax collection is relatively easier.|
|Example Income tax, wealth tax, etc.||Example GST, excise duty custom duty sale tax service tax|
Concept: Structure of Public Finance - Public Revenue
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