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Question
what is indirect tax?
 Question Submitted By :: Teju
I also faced this Question!!     Rank Answer Posted By  
 
  Re: what is indirect tax?
Answer
# 1
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 ?    108 Yes 19 No
Raju
 
  Re: what is indirect tax?
Answer
# 2
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 ?    71 Yes 24 No
Vinotha.v
 
 
 
  Re: what is indirect tax?
Answer
# 3
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 ?    62 Yes 9 No
Rajesh
 
  Re: what is indirect tax?
Answer
# 4
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 ?    37 Yes 8 No
Trupti
 
  Re: what is indirect tax?
Answer
# 5
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 ?    23 Yes 10 No
Ruchi
 
  Re: what is indirect tax?
Answer
# 6
I think Direct Tax means,'Any income accrued/received by 
any 'Person')liable to pay directly to GOVT.'.

INDIRECT TAX: 'Any expenditure incurred/accrued on any 
goods/services is eligile for tax by any 'PERSON'liable to 
pay indirectly to GOVT.
 
Is This Answer Correct ?    18 Yes 11 No
Vishal
 
  Re: what is indirect tax?
Answer
# 7
ohhhhhh silly question i think u all know about and many
friends tried also ... pls post something special guys....
 
Is This Answer Correct ?    18 Yes 28 No
Sai
 
  Re: what is indirect tax?
Answer
# 8
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 ?    17 Yes 7 No
Dinesh Vasu
 
  Re: what is indirect tax?
Answer
# 9
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 ?    16 Yes 4 No
Hitesh
 
  Re: what is indirect tax?
Answer
# 10
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 ?    19 Yes 4 No
Rekha Gusain
 
  Re: what is indirect tax?
Answer
# 11
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 ?    11 Yes 7 No
Rama
 
  Re: what is indirect tax?
Answer
# 12
indirect tax mens amount which is idirectly included in 
price of goods & which collected by manufacture  from 
dealer, by dealer from distributer, by distributer from 
consumer. hear consumer paid tax indirectly to manufacture.
so this type of tax calledas indirect tax.
 
Is This Answer Correct ?    14 Yes 6 No
Abhijeet Khandale
 
  Re: what is indirect tax?
Answer
# 13
Indirect Tax is those Tax which is not Direct Tax,In 
Indirect tax is paid by other person and bear by other 
person.
 
Is This Answer Correct ?    8 Yes 11 No
Satya
 
  Re: what is indirect tax?
Answer
# 14
paying taxes indirectly i.e through brokers is called
indirect taxes
 
Is This Answer Correct ?    8 Yes 23 No
Rajesh
 
  Re: what is indirect tax?
Answer
# 15
Where in incidence and impact is on difference persons
 
Is This Answer Correct ?    6 Yes 11 No
Hemanth Danda
 
  Re: what is indirect tax?
Answer
# 16
INDIRECT TAX:

Tax payers pay indirectly ies,purchasing goods and 
commodities pay services.
indirect tax r paid before the good or services reach the 
tax payerexample:service tax,cst customs,excise duty.
 
Is This Answer Correct ?    8 Yes 11 No
Rajinikanth(loyola)
 
  Re: what is indirect tax?
Answer
# 17
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 ?    15 Yes 3 No
Debendra Mahapatra
 
  Re: what is indirect tax?
Answer
# 18
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 ?    15 Yes 5 No
Yasmeen Khan
 
  Re: what is indirect tax?
Answer
# 19
Direct tax means the amount which generate from taking 
services, in other words tax amount alredy included in the 
price which we pay and that part of amount is deposited as 
tax by other person on behalf of customer that is called 
indirect tax.
 
Is This Answer Correct ?    7 Yes 4 No
Kaushal Jha.
 
  Re: what is indirect tax?
Answer
# 20
the burden of tax levied on someone will be shared by the 
others in the form of sales tax etc
 
Is This Answer Correct ?    3 Yes 7 No
Jayakar
 
  Re: what is indirect tax?
Answer
# 21
Indirect taxes – include VAT and a range of excise duties
on oil, tobacco, alcohol. The burden of an indirect tax can
be passed on by the supplier to the final consumer –
depending on the price elasticity of demand and supply for
the product.
 
Is This Answer Correct ?    5 Yes 1 No
Suleman Apenteng
 
  Re: what is indirect tax?
Answer
# 22
Indirect Tax is the tax which is born by the consumer. It 
is transferable from manfacturer to consumers like 
VAT,Excise,Service Tax Ect.
 
Is This Answer Correct ?    7 Yes 2 No
Jitender Arora
 
  Re: what is indirect tax?
Answer
# 23
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 ?    5 Yes 2 No
Vinod Agrawal Aicar B School
 
  Re: what is indirect tax?
Answer
# 24
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).
 
Is This Answer Correct ?    4 Yes 1 No
Amrita
 
  Re: what is indirect tax?
Answer
# 25
indirect tax are those tax which are indirectly deposited 
by taxpayer(custmoer)through others(manufacturer,wholesaler,
retailer)&the border of deposit of indirect tax is on the
producer,wholesaler,retailer& not on the consumers. example
 EXAMPLE of  indiracttax are:-  
centralexciseduty,customduty,salestax(VAT),servicetax.
 
Is This Answer Correct ?    2 Yes 2 No
Gauranga Mahala
 

 
 
 
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