Explain the basis of classifying taxes into direct and indirect tax. Give examples.
CBSE DELHI - SET 2 2017
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When the burden of a tax and the liability to pay it falls on the same person, then it is a direct tax.When burden of tax and liability to pay it fall on different persons, then it is indirect tax.Example:
- Direct tax- Income tax, etc.
- Indirect tax- Service tax, etc.
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