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Indirect Taxes

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HomeBrud.gifTax LawBrud.gifTaxBrud.gifIndirect Taxes

An Indirect Tax is a tax that is indirectly paid by the person benefiting of a Good / Service to the Revenue of Government via an intermediately / middle man.


  • Service Tax is the tax on providing services (Ex: Service Tax Act, 1994)
  • Central Excise Act, 1944
  • Central Sales Tax Act, 1956 is the tax on inter-state trade
  • Laws related to Valued Added Tax
  • Indirect Tax collections often are far higher than Direct Tax collections for most Governments
  • Indirect Taxes are paid even before the good reach the taxpayer.
  • Some Governments combine different types of indirect taxes into one for simplicity sake. In India, for example, is considering merging taxes on Goods and Services into a consolidated Goods and Services Tax.

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