what was the name of the direct tax
Answers
Answer:
The Government of India levies two types of taxes on the citizens of India – Direct Tax and Indirect Tax. Indirect taxes are usually transferred to another person after being initially levied as a direct tax. Common examples of an indirect tax include Goods and Services Tax (GST) and VAT. GST is levied on the manufacturers or service providers as a direct tax, which is then transferred to the consumers when it is part of the final price of the goods or services, thus, making it an indirect tax for the consumers
A government levy on the income, property, or wealth of people or companies. A direct tax is borne entirely by the entity that pays it, and cannot be passed on to another entity.
Examples include corporation tax, income tax, and social security contributions. Unlike consumption taxes (see indirect tax), direct taxes are based on the ability to pay principle but they sometimes work as a disincentive to work harder and earn more because that would mean paying more tax.
USAGE EXAMPLES
•You should always know how much the direct tax will be on a product so that you can factor that into your accounts.
•I realized that we would be given a direct tax on all of our profits, which made me angry because I hated taxes.
•The direct tax represented the largest section of the taxes paid this quarter so we were happy with our profits.
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