DIFFERENCE BETWEEN DIRECT AND INDIRECT TAXES

S. No.	Direct taxes	Indirect taxes
	They are imposed on persons.	They are levied on the goods and services.
	No invoices are made.	Invoices are made.
	The burden of the tax is on the same person who pays it.	The burden of the tax is on the ultimate consumers.
	Direct tax assessee pays the tax directly to the government.	Indirect tax assessee collects from customers and then pays to the government.
	They are progressive in nature i.e., tax rates are high for people having higher ability to pay.	They are regressive in nature i.e., all the consumers equally bear the burden, irrespective of the ability to pay.
	Examples, income tax, wealth tax, etc.	Examples, excise duty, custom duty, VAT, service tax, etc.

Source:- indirecttaxprofessionals.com (Devalya Advisory LLP)