Indirect taxes are called so because they are collected indirectly from

Indirect taxes are called so because they are

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Indirect taxes are called so because they are collected indirectly from consumers by the government through intermediaries, who are the first payers of the tax to the government. These taxes are different from direct taxes such as income tax which is collected directly from taxpayers. Indirect taxes include taxes such as sales tax, service, tax, VAT etc. whereas income tax, wealth tax, corporation tax etc. fall under the ambit of direct taxes. Unlike direct taxes, indirect taxes are levied on goods and services rather than individuals. Individuals pay the taxes indirectly in the form of higher prices on their purchases. A retailer selling a product to you has already levied indirect taxes on the product, which is then passed on to the relevant tax-collection authorities.
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In India, indirect taxes is a vast ocean as there are number of taxes to be paid on manufacture, import, sale and even purchase in certain cases. Further the law is governed less by the Acts and more by day to day notifications, circulars and orders by the Governing bodies. So an explicit understanding is very much essential. A simplistic way to understand Indirect taxes is as follows: News About Indirect Tax- Below we are giving some updates regarding Indirect Tax. (I) : Indirect Tax Collections Rise By 41% Indirect Tax collections shot up by 41 per cent during April 2016 on the back of a major rise in excise collections. Collections to the tune of Rs 64,394 crore were recorded in the same month, showing an increase by 17 per cent after the exclusion of collections via additional resource mobilisation measures. Central excise collections also showed a sharp upturn, rising by 70 per cent to Rs 28,252 crore in comparison to Rs 16,546 crore in April last year. A tweet by Revenue Secretary Hasmukh Adhia stated that provisional revenue figures for indirect tax showed a 41% growth in April 2016 as compared to revenue figures during the same time last year. Customs collections for April 2016 also saw a 22 per cent rise from Rs 14,286 crore last year to Rs 17,495 crore, while service tax collections witnessed an increase of 27 per cent, shooting up from Rs 14,585 crore last year to Rs 18,647 crore this April. However, no details on direct tax collections were forthcoming. (II) : Raised monetary limits for appeals in Indirect Tax cases Central Board of Excise and Customs has raised limits for appeals made in case of indirect taxes. In appellate tribunals the limit is now Rs.10 lakhs and it is Rs. 15 lakhs for high courts. The earlier limits were Rs.5 lakhs and Rs.10 lakhs. Detailed information about the issuance of Show Cause Notice have been rolled out by the department. CBED is also organizing workshops and various sessions to strengthen the quality of SCNs issued. This is also in order to minimize dispute as well as litigation. Types of Indirect Taxes: Indirect taxes is a broad category under which different kinds of indirect taxes fall. There are 4 basic sub- categories with further sub-divisions according to goods and services.
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List of Indirect Taxes or Examples of Indirect Taxes: Service tax Excise duties VAT
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