DIRECT TAX | INDIRECT TAX |
It is levied on income and activities conducted. | It is levied on products or services. |
The burden of tax cannot be shifted in case of direct tax. | The burden of tax shifted for indirect taxes. |
It is paid directly by a person concerned. | It is paid by one person but he recovers the same from another person i.e. person who actually bears the tax ultimate consumer. |
It is paid after the income reaches in the hands of the taxpayer | It is paid before goods/service reaches the taxpayer. |
Tax collection is difficult | Tax collection is relatively easier |
Example Income tax, wealth tax, etc | Example GST, excise duty custom duty sale tax service tax |