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Indirect taxes are charged on the purchase of goods and services. It is not imposed directly on a person's income. Instead, he or she must pay the tax in addition to the amount of the products or services purchased by the seller. Thus, the person paying the tax to the government and the person liable to pay the tax are two distinct individuals. Previously, many forms of indirect taxes were applied, as follows: Service tax is levied on the services provided to the client. For example, if the individual hires a hotel room, service tax is levied on the whole value of the reservation. Excise duty: This is paid when items are manufactured. For example, if a guy makes vehicles, he must pay excise duty on such autos. Value Added Tax (VAT): This is paid on the price increase that occurs during the sale of products. When a wholesaler sells items to a store, for example. Customs tax is levied on items imported from outside India. Stamp duty is levied on the sale of real estate.
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