Difference between Direct Taxes and Indirect Taxes

                      Direct Taxes

                            Indirect Taxes
1. Payer of tax and sufferer of tax one and same (i.e. impact and incidence on the same person)
1. Payer of tax not sufferer of tax whereas sufferer of tax is not paying directly to the Government (i.e. impact on one head and incidence on other head)
2. Income based taxes
2. Supply based taxes
3. Rate of taxes are different from person to person
3. Rate of duties are not differ from person to person
4. Entire revenue goes to Central Government of India
4. Revenue source to Central Government of India as well as State Governments (i.e. CGST and SGST)
5. Previous year income assessed in the assessment year
5. There is no previous year and assessment year concept
6. Central Board of Direct Taxes (CBDT) is an important part of Department of Revenue.
6. Central Board of Excise and Customs (CBEC) is an important part of Department of Revenue.
The Central Board of Excise & Customs is being renamed as the Central Board of Indirect Taxes & Customs (CBIC), after getting legislative approval.
7. Progressive nature.
7. Regressive nature

About Commerce Now

Hi, Myself CMA(semi qualified Cost Accountant) Mousam Roy having more than 5 years experience in commerce field,teaching field as well as professional field with working with PSU and big Firm.


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