how to
find tax is direct or indirect tax
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The most fundamental classification of taxes is based on the person who is collecting tax from the payers
Explanation:
Direct tax: this tax is directly paid to the government by tax payers. It is a tax applied on individuals and organizations directly by the government e.g. income tax, corporation tax, wealth tax etc.
Indirect tax: These are applied on the manufacture or sale of goods and services. These are initially paid to the government by an intermediary, who then adds the amount of the tax paid to the value of the goods / services and passes on the total amount to the end user. e.g. sales tax, service tax, excise duty etc.
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hi !! ask me a any questions?
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