Indirect Tax

While calculating your income tax, you may wonder, what is indirect tax? As you can guess, the indirect tax meaning is opposite to that of direct tax. Indirect tax refers to the taxes that government imposes on goods and services. This means you can transfer your indirect tax obligations to another individual or entity. 

Moreover, in contrast, to direct tax, indirect tax is not imposed on your income, your profit or your revenue. For more clarity on the concept, here are some indirect tax examples: customs duty, sales tax, excise duty, stamp duty, entertainment tax and service tax.