Taxation

Things to remember

• Tax is the most important source of income or revenue for the government.
• Tax is a liability of a person or an organization to the state or government. 
• Direct tax is a tax which is collected directly from the individuals and organizations on the basis of their incomes and properties. 
• Indirect tax  is a tax which is imposed upon one person but paid partially or wholly by another person. It is levied for the production, distribution and consumption of goods and services. 
• The tax which is collected by the government at the boundary of the country at a time of importing and exporting the goods is known as custom duty.