What are Direct tax and Indirect tax

Last updated at July 31, 2026 by

What are Direct tax and Indirect tax - Current and Deferred Tax Computation

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Direct tax is when person pays tax from pocket. Indirect tax is when person collect tax from customer pay to government. Example Income tax is direct tax and Vat, Service tax, Excise, Customs etc.

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant with 16+ years of practical experience and 20+ years of teaching experience. At Teachoo, he simplifies Accounts, Tax and GST with step-by-step examples so students can apply concepts confidently in exams and real life.

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