Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board.
Chapter 8 : Public Finance in India
Q.3.Distinguish between the following concept
5. 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 case of direct tax. | The burden of tax shifted for indirect taxes. |
It is paid 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 |
