Indirect Tax Services
Indirect Taxes are taxes collected by an intermediary (such as a retailer) from the person who bears the ultimate economic burden of the tax (such as the consumer). These taxes are not directly paid to the government by the individual but are included in the price of goods and services.
Nature of Indirect Taxes
Indirect taxes are levied on the manufacture, sale, or consumption of goods and services. They are considered regressive because they take a larger percentage of income from lower-income individuals. The burden of these taxes can be shifted from the producer to the consumer, which differentiates them from direct taxes.
There are many advantages of filing ITR online:
- Broad-Based Collection: Indirect taxes are collected from a wide base, as they are included in the price of goods and services consumed by the general public.
- Ease of Collection: Easier to collect compared to direct taxes, as they are collected by intermediaries (retailers, manufacturers) rather than individuals.
- Non-Evasive: Difficult to evade since they are included in the price of goods and services, ensuring a steady stream of revenue for the government.
- Promotes Fairness: Taxes are based on consumption rather than income, ensuring that everyone contributes to government revenue in proportion to their consumption levels.