what is indirect tax?

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what is indirect tax? ..

Answer / raju

A tax that is not assessed on and collected from those who
are intended to bear it. Unlike a direct tax,it cannot take
individual circumstances into account. Although levied on
producers, the burden of an indirect tax may be 'shift' to
consumers.
Ex: value added tax, sales tax, payroll tax and excise duties.

Is This Answer Correct ?    267 Yes 46 No

what is indirect tax? ..

Answer / rajesh

tax has been classified in two types direct tax and
indirect tax direct tax can not be trasfered to another
person where as indirect tax can be trasfered to another
person. direct tax is charged on persons and inderect tax
is charged on commodities. indirect tax collected by
manufacturer from distributor and distributor from retailer
and then retailer from consumer that means indirectly
collected from consumer in chain process where as direct
tax is olny collected from assessee

Is This Answer Correct ?    205 Yes 15 No

what is indirect tax? ..

Answer / vinotha.v

the producer the burden of the indirect tax may be shift to
the consumer.

Ex. service tax, payroll tax, sales tax, vat, central
excise duties, etc.,

Is This Answer Correct ?    167 Yes 50 No

what is indirect tax? ..

Answer / trupti

THERE ARE TWO TYPE OF TAXES ONE IS DITECT TAX & ANOTHER IS
INDIRECT TAX. DIRECT TAX IS A TAX ON INDIVIDUAL PERSON
WHEREAS INDIRECT TAX IS A TAX ON GOODS & SERVICES. IN CASE
OF DIRECT TAX BURDEN OF TAX CAN NOT BE SHIFTED BUT IN CASE
OF INDIRECT TAX BURDEN OF TAX CAN BE SHIFTED.EG OF INDIRECT
TAX IS SERVICE TAX, SALES TAX, VAT ETC.IN CASE OF INDIRECT
TAX, TAX MAY BE INDIRECTLY COLLETED FROM CONSUMER,
RETAILER, OR MANUFACTURER.

Is This Answer Correct ?    96 Yes 20 No

what is indirect tax? ..

Answer / ruchi

Indirect Tax is charged not directly its charged by the
other third party but paid by the 1st (seller) to the gov.

For eg: we sale product Rs.200 to the party in this the
seller (1st party) add VAT @12.5% that means total amount
is R.225. then 2nd party sale the product in the market to
consumer with inclusive VAT . But the seller will submit
the tax to the gov. But this tax is paid by consumer.

Is This Answer Correct ?    62 Yes 21 No

what is indirect tax? ..

Answer / rekha gusain

As everybody knows, tax may be direct or indirect. Direct
tax ix the tax, burden of which cannot be shifted to
others. e.g. income tax. In this the tax is paid by the
person who earns and nobody except him can pay his tax on
his behalf.

On the other hand there is indirect tax like sales tax.
In such type of tax the burden can be shifted to other
person.eg a manufacturer of printing paper pays sales tax
on sale of his product but later on he can receive the
amount of tax paid by the manufacturer from the buyer of
the goods.

Is This Answer Correct ?    41 Yes 13 No

what is indirect tax? ..

Answer / debendra mahapatra

Indirect tax is a tax on goods and services, the incidence
of which is borne by the consumers who ultimately consume
the goods and services. The major source of indirect taxes
are excise duty, customs duty, sales tax, service tax etc.

Is This Answer Correct ?    27 Yes 4 No

what is indirect tax? ..

Answer / dinesh vasu

indirect tax is a tax which is paid not by the producer. it
is paid by the consumer of the goods. it is progressive in
nature.and the burden is less to the producer.the burden of
tax will levy on the person who spends his income and
incure expenditure.

Is This Answer Correct ?    41 Yes 20 No

what is indirect tax? ..

Answer / hitesh

TAX is classifiesd in two catogaries .
Direct tax & Indirect tax, Indirect Tax are those tax which
is leived on comodities,a manufacturer charge from
distributor and distributor charge from wholesaler,
wholesaler from retailer,retailr charge from its customer.
The burden of these tax can be transfered to other.
example : valued added tax, sales tax etc.

Is This Answer Correct ?    34 Yes 16 No

what is indirect tax? ..

Answer / yasmeen khan

The term indirect tax has more than one meaning.
In the colloquial sense, an indirect tax (such as sales
tax, value added tax (VAT), or goods and services tax
(GST)) is a tax collected by an intermediary (such as a
retail store) from the person who bears the ultimate
economic burden of the tax (such as the customer). The
intermediary later files a tax return and forwards the tax
proceeds to government with the return. In this sense, the
term indirect tax is contrasted with a direct tax which is
collected directly by government from the persons (legal or
natural) on which it is imposed. Some commentators have
argued that "a direct tax is one that cannot be shifted by
the taxpayer to someone else, whereas an indirect tax can
be."[1]
An indirect tax may increase the price of a good so that
consumers are actually paying the tax by paying more for
the products.[2] Examples would be fuel, liquor, and
cigarette taxes. An excise duty on motor cars is paid in
the first instance by the manufacturer of the cars;
ultimately the manufacturer transfers the burden of this
duty to the buyer of the car in form of a higher price.
Thus, an indirect tax is such which can be shifted or
passed on.
In addition, the U.S. Government deems VAT to be a direct
tax for purposes of the Vienna Convention on Diplomatic
Relations, as it does the London Congestion Charge so
diplomats are exempt. The U.S. Department of State's Office
of Foreign Missions operates a reciprocity policy in the
matter of sales tax exemption. Another important
definitional conflict has simmered at the World Trade
Organization in the context of the granting of export tax
rebates by the United States (FSC and DISC corporations).
In the early years of the United States, there was strong
opposition to the federal government levying direct taxes.
As a result, the government resorted to tariffs, an
indirect tax

Is This Answer Correct ?    27 Yes 9 No

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