GK Trick: Trick to remember Direct & Indirect Taxes
Trick –– "Wepro, co, in (Direct Taxes)"
• We- Wealth Tax
• Pro- Property Tax
• Co- Corporate Tax
• In- Income Tax
Trick –– "Excuse Me (Indirect Taxes)"
• Ex- Excise tax
• Cu- Custom tax
• Se- Service tax
• M- Market tax/vat
• E- Entertainment tax
Indirect tax refers to the tax that is levied on goods and services. Excise duty is a type of indirect tax that is levied on locally produced goods, company's revenue, and occupation.
A direct tax is a type of tax that is levied on an individual or organization's income or profits. Capital Gains Tax, Wealth Tax, and Estate Duty are examples of direct tax.