TAX DEFINATION

DIRECT TAX DEFINITION

A tax that is paid directly by an individual or organization to the imposing entity. A taxpayer pays a direct tax to a government for different purposes, including real property tax, personal property tax, income tax or taxes on assets.

INDIRECT TAX

A tax that increases the price of a good so that consumers are actually paying the tax by paying more for the products

EXAMPLE OF DIRECT TAX AND INDIRECT TAX

DIRECT TAX-:      INCOME TAX, HOUSE TAX etc.

INDIRECT TAX-:  CUSTOM DUTY, EXCISE etc.