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What is the definition of direct and indirect taxes with one example?
Wiki User
∙ 8y ago
Answer 1
Direct taxes are aimed at a particular type of person, for example income tax. There are brackets, and the more you earn the more you pay. Indirect taxes, such as VAT are the same for everyone, so the poor are hit harder than the rich.
Answer 2
Direct taxes are the taxes for which the liability and the incidence of tax lies on the same person,whereas ,in case of indirect taxes, the liability and the incidence of the tax lies on different persons.Say,income tax is a direct tax & it is paid by the same person on whom it is levied.But in case of sales tax,which is an indirect tax,it is levied on the seller but it is actually paid by the buyer by means of increase in price of the product.
Wiki User
∙ 8y ago
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The difference between direct taxs and indirect taxs and give examples of each?
The difference between direct taxes and indirect taxes with examples is that direct taxes come directly from a person's income or personal property taxes. Indirect taxes comes from sales and excise taxes.
Is income tax a direct tax or indirect tax?
As many people know, the state and federal government level taxes are the direct form of taxation;for example, corporate taxes are another form of direct tax--those taxes levied against income earned by corporations. soc sec , medicare, estate and gift taxes are more types of direct tax, as is the income tax charged by the state you live in. The simple definition of a direct tax is one that you have no choice in paying.
What are indirect taxes?
Indirect taxes are a form of cost that goes into the final cost of the end product. Direct taxes paid would be sales taxes and such, but indirect taxes would be taxes paid by the manufacturer of goods that ultimately goes into the cost of goods sold.
What is Direct and indirect tax?
A direct tax is a tax that is paid directly to the government by the person who is working. An indirect tax is when a person pays taxes to a store and then the store has to pay the taxes to the government.
Is federal income tax direct or indirect?
Federal income tax is a direct tax on income and not an indirect tax. Direct taxes are paid directly to the government.
Explain the difference between a direct tax and Indirect tax?
1. The allocative effects of direct taxes are superior to those of indirect taxes. 2. Direct taxes are progressive and they help to reduce inequalities. 3. The administrative costs of direct taxes are more than that of indirect taxes. 4. Direct taxes are more flexible than that of indirect taxes. 5. Indirect taxes are more growth oriented than direct taxes.
The difference between direct taxs and indirect taxs and give examples of each?
The difference between direct taxes and indirect taxes with examples is that direct taxes come directly from a person's income or personal property taxes. Indirect taxes comes from sales and excise taxes.
What is the difference between direct and indirect taxes?
A direct tax is one that is taken directly from the individual, such as income tax. Indirect taxes, such as sales tax, are collected by merchants and taken from the consumer. Indirect taxes also lead to inequalities while direct taxes do not.
Is income tax a direct tax or indirect tax?
As many people know, the state and federal government level taxes are the direct form of taxation;for example, corporate taxes are another form of direct tax--those taxes levied against income earned by corporations. soc sec , medicare, estate and gift taxes are more types of direct tax, as is the income tax charged by the state you live in. The simple definition of a direct tax is one that you have no choice in paying.
What are indirect taxes?
Indirect taxes are a form of cost that goes into the final cost of the end product. Direct taxes paid would be sales taxes and such, but indirect taxes would be taxes paid by the manufacturer of goods that ultimately goes into the cost of goods sold.
Are indirect taxes?
Indirect taxes are a form of cost that goes into the final cost of the end product. Direct taxes paid would be sales taxes and such, but indirect taxes would be taxes paid by the manufacturer of goods that ultimately goes into the cost of goods sold.
What is Direct and indirect tax?
A direct tax is a tax that is paid directly to the government by the person who is working. An indirect tax is when a person pays taxes to a store and then the store has to pay the taxes to the government.
Is federal income tax direct or indirect?
Federal income tax is a direct tax on income and not an indirect tax. Direct taxes are paid directly to the government.
What is the difference between direct tax and indirect ta?
Direct taxes are levied directly on individuals or organizations and cannot be transferred to another party, such as income tax or property tax. Indirect taxes are imposed on goods and services and are ultimately paid by the consumer, like sales tax or value-added tax.
What are the examples of direct tax and indirect taxes?
...not sure but an direct tax is when you are taxed right then and there and you know about it ...a indirect tax is when you are taxed later on and don't know about it
Is sales tax direct or indirect?
Direct taxation is defined as the tax which is directly levied on the citizens of a country. All individuals and business concerns have to pay direct taxes to the government on a regular basis. These direct taxes are calculated on every source of income that accrues to the business of individual.On the other hand, the citizens of a country are charged certain levies indirectly as well. These indirect levies are known as indirect taxes. These are the taxes payable on an activity or a commodity. Some common examples of indirect taxes are sales tax and excise tax.
What does indirect mean?
Indirect means diverging from a straight line/path, not going straight to the point,the opposite of direct. It is used to mean a roundabout or covert method of action, in terms such as indirect taxes, indirect characterization, or indirect criticism.
