What is meaning of the tax?
Posted On April 25, 2022
“Tax is a cost of living in a society”
Taxes are levied by the Governments to meet the common welfare expenditure of the society.
There are two types of Taxes as follows.
The tax is levied directly on the income or wealth of a person
e.g. Income Tax and Tax on Undisclosed Foreign Income and Assets.
The person who pays the tax to the government cannot recover it from somebody else, the burden of direct tax cannot be shifted.
The tax is levied on the price of good and service
e.g. GST or Custom Duty.
In the case of indirect taxes, the person paying the tax passes on the incidence to another person.