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Tax is a mandatory payment to be made to the government required by the tax authorities. This tax is utilized by the legislature in the Welfare of the general public and protection. Each person on whom the tax is imposed needs to pay it obligatorily. The non-payment of tax is an offense and punishable by law.
By and large, there are 2 sorts of taxes:
Each Country has various standards and conditions and various percentages of levying taxes. A few governments apply a flat rate of tax on the income and another levy a progressive form of taxation i.e. with the increase in the income; the tax will be increased.
Direct Tax: It is the sort of tax whose weight can't be moved onto someone else. It is exacted on the Income of the individual and he is at risk to pay it himself. He can't move the weight of the installment on any other individual. Example: Income Tax and Wealth Tax.
Indirect Tax: Indirect expense is the sort of tax whose weight can be moved to someone else. It is, for the most part, demanded on the merchandise and enterprises. This sort of taxation rate's can be moved to someone else, for example, the producer moves the weight of extract obligation on the retailer and further retailer moves the weight of extract obligation and VAT on the purchaser. Example: VAT, Excise Duty, Goods and Services Tax and so on.
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