Answer :

When the liability to pay the tax and the burden of the tax lies on the same person it is said to be a form of the direct tax. For example, income tax and corporate tax. The burden of such taxes cannot be shifted to others.

OR


When the liability to pay the tax and the burden of the tax lies on different people it is said to be a form of the indirect tax. For example, Goods and services tax. The burden of such taxes can easily be shifted to others.


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