Business Environment, 2nd Edition

CHAPTER 17

Direct and Indirect Taxes

CHAPTER OUTLINE

• Introduction
• Income Tax
• Corporate Tax
• Wealth Tax
• Excise Duties
• Customs Tariff
• Central Sales Tax (CST)
• Modified Value Added Tax (MODVAT)
• Central Value Added Tax (CENVAT)
• Value Added Tax (VAT)
• Case
• Summary
• Key Words
• Questions
• References

INTRODUCTION

A tax which is paid by the person on whom it is legally imposed and the burden of which cannot be shifted to any other person is called a “Direct Tax”. J.S. Mill defines a direct tax as “one which is demanded from the very persons who, it is intended or desired, should pay it”. The person from whom it is collected cannot shift its burden to somebody else. Thus, we have the impact, that is, the initial, as the first burden and the incidence, the ...