Guide to Direct Tax vs Indirect Tax. Here we discuss differences between Direct Tax and Indirect Tax with infographics and comparison table. Taxes consist of direct tax or indirect tax, and may be paid in money or as its labour equivalent (often but not always unpaid labour). India has a well developed taxation structure. The tax system in India is mainly a three tier system which is based between the Central, State Governments and the local government organizations. Learn the difference between direct and indirect taxes, how they are imposed, collected, and paid in India. Find out the major types of direct and indirect taxes, their advantages and disadvantages, and some examples. Direct tax is levied directly on individuals or businesses based on income & profits. However Indirect tax is not directly imposed but is passed through goods & services.
