Indirect tax levied on goods and services rather than on income or profits.
Examples of Indirect Taxes In India:
- Customs Duty In India.
- Goods & Services Tax (GST).
1) Customs Duty In India :
Customs Duty is a type of Indirect Tax which is levied on goods which are imported into India. In some cases, it is also levied when the goods are exported from India.
2) Goods & Services Tax :
To understand GST, it is important that we understand
the current indirect taxation system. Direct taxes such as
income tax are borne by the person liable to pay the tax;
this means that the tax burden cannot be shifted to anyone
else. The liability of an indirect taxes on the other hand,
can be shifted to another person. So, the person liable to pay
the tax can collect the tax from someone else and then pay it
to the government; thus shifting the tax burden.
To know more about launch of GST and registration procedure, please click here : All about GST.