Q. 234.6( 5 Votes )

Explain the basis

Answer :

The basis of classifying taxes into direct and indirect taxes is the shifting impact of tax.

When the burden of a tax and the liability to pay it falls on the same person, then it is a direct tax. For example – Income Tax.


When the burden of tax and liability to pay tax falls on different persons, then it is indirect tax. For example – GST.


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