Tag: government budget and taxation

Value Added Tax (VAT) is an indirect tax because the burden is shifted from the seller to the buyer. Wealth, income, and gift taxes are direct taxes as they are levied directly on the individual or entity.

Income tax is a direct tax because the person who pays it to the government is the same person who bears the economic burden. Service tax, custom duty, and excise duty are indirect taxes.

Gift tax is a direct tax levied on the donor or recipient of a gift. Sales tax, excise tax, and custom tax are all examples of indirect taxes.

Custom duties, excise duties, and sales tax are all indirect taxes. Estate duty is a direct tax levied on the estate of a deceased person.

Excise duty is an indirect tax levied on the production or sale of goods. Wealth tax, profit tax, and income tax are all direct taxes.

Incidence of taxation refers to the final resting place of the tax burden. While the impact is the initial payment, the incidence is who ultimately pays the cost.

Direct tax is levied (charge) on the income earned by individuals (income tax) and the profits of businesses (Corporate tax). 

Tariff barriers refers to various tariffs or duties imposed on foreign trade transactions to impose trade restrictions. Among the given options ad-valorem duty is tariff barrier, while the others are non-tariff barriers to trade.
Ad-valorem duty is imposed on import goods as percentage of the total value of goods imported.

The dematerialization of TDS certificates was introduced to streamline the tax deduction process, and it became effective from April 1, 2008.