Question

What are the types of tax? and explain its.

Answer 1

Taxes are classified into two types. There are:
1. Direct Tax:

• A Direct tax is paid directly by an individual or organisation to imposing entity
• Eg: Income tax, Wealth Tax, etc.

2. Indirect Tax:

• Indirect Tax is a tax whose burden can be shifted to others.
• Eg: Service tax, Value added tax, etc.