Important dams in India

Brief details of the important dams in India such as the Tehri Dam, Bhakra Dam, Hirakud Dam, Indira Sagar Dam, Nagarjuna Sagar dam, and Mettur dam is given below:

The Tehri Dam at Tehri in Uttarakhand which lies on the Bhagirathi River in India holds the rank of highest dam in India and one of the tallest dams in World. The Tehri Dam was built in the year 2006 with 1000 MW of hydro power generation capacity. It’s water is also used in the Municipal water supply and in irrigation works in the state of Uttarakhand. The Tehri dam is a 855 ft high rock and its length is 1886 ft, crest width of 66 ft and base width of 3701 ft which creates 2.6 cubic km of reservoir.
        

The Bhakra dam is across the Sutlej River. It was described as “New Temple of Resurgent India” by Pandit Jawaharlal Nehru who was the first prime minister of independent India. The Bhakra Dam is in the village of Bhakra in Himachal Pradesh of India. It was built in the year 1963. There is an another dam called Nangal in the downstream of Bhakra and both were called as Bhakra Nangal Dam. The Bhakra dam is at 740 ft tall which is next to the Tehri Dam, so it is the 2nd highest dam in India. The Bhakra dam is also the 2nd largest reservoir with capacity of 9.34 billion M3 after the Indira Sagar Dam in the state of Madhya Pradesh.
      

The Hirakud Dam was built in the year 1953 across the Mahanadi River in Hirakud district in Odisha. The Hirakud Dam was build for multipurpose use as Irrigation, Hydro Electricity generation etc. This dam has the installed hydro-power generation capacity of 307.5 MW. This dam is also saves the entire Mahanadi delta from flood. Hirakud dam’s length is 25.8 KM with an artificial lake of 743 sq K.M. which is the Asia’s biggest artificial lake.
      

 The Indirasagar Dam is built accross the Narmada river which is the India’s 5th largest river, at Narmadanagar in the district of Khandwa in Madhya Pradesh, was commissioned in the year 2005. This dam holds the 1st position as largest reservoir with installed capacity of 12.22 billion M3 in India. The Indirasagar dam has 1000 MW of hydro power installed capacity. This dam serves as a multipurpose dam like Hirakud, Bhakra Nangal dam etc.

The Nagarjuna Sagar dam was one of the earliest large Infra-projects which is built across Krishna River in Andhra Pradesh in India. The Nagarjuna Sagar dam is 150 meter tall and 1600 meter long which has the installed capacity of 816 MW of Hydro-electricity in 8 power generation units. This dam has water reservoir capacity of 11472 million M3.

The Mettur dam which was one of the oldest and largest dams was built in the year 1934 in India. This dam built across the Kaveri River in Tamilnadu state. Mettur dam is situated at Salem district in Tamilnadu. The Mettur dam has the reservoir capacity of 94.3 billion cubic feet at height of 120 ft and length is at 1700 meters. The Mettur dam is utilised mainly in farm land irrigation works in the parts of Namakkal, Salem, Tiruchirapalli and district of Thanjavur.

Important Rivers in India

List of Important rivers in India

Important rivers in India

The rivers is played very important role in providing irrigation water, drinking water, electricity, easy & cheap transportation, other miscellaneous works has been done with the help of rivers.

The important rivers of India are Ganga, Yamuna, Brahmaputra, Indus, Mahanadi, Godavari, Krishna, Kauery, Narmada and Tapti. A brief description of these rivers is given below:
   

Ganga: Ganga is the most holy river according to Hindu. It has started from the Gangotri in the Himalayas and poured into the Bay of Bengal by travelling of around 2525 km. It is ranked 3rd largest river in the world. There are a number of cities had been developed across the banks of Ganga like Pataliputra, Kashi, Allahabad, Varanasi, Kolkata etc. It had also created the World’s largest delta in West Bengal named as Sundarban delta.

Yamuna: Yamuna River had originated from Yamunotri Glacier in the Himalayas, then travels across several states and merged into the Ganga at Triveni, Allahabad. Its total length is 1376 km. Yamuna River’s water contributed nearly 70% of Delhi’s water supply. The Taj Mahal is situated on the banks of Yamuna River.

Brahmaputra: Brahmaputra River is originated from Angsi Glacier, the northern Himalayas in Tibet(China), then entered into the Arunachal Pradesh to Assam and then merges with the Padma river in Bangladesh. Its length is around 2900 km and plays an important role in the irrigation and transportation. It emptied into the Bay of Bengal.

Indus River: The Indus River is a historically famous in Asia. It originated from the Tibetan Plateau, and then flows through the Ladakh then entered into Pakistan and finally merge into the Arabian Sea after travelling a distance of 3180 km.

Mahanadi River: Mahanadi is a major river in the state of Chhattisgarh and Odisha. Mahanadi’s water is used in the irrigation and drinking purpose, it is also called the ruin of Orissa due its devastating floods over the years but till Hirakud Dam was constructed. Its total length is 858 km.

Godavari: Godavari is the longest river in the southern India and 2nd largest in India after Ganga. It is originated from Maharashtra and flows through Andhra Pradesh, then merges into the Bay of Bengal after travelling a distance of 1465 km.

Krishna: The 3rd longest river in India after Ganga and Godavari, Krishna River which is originated from Mahabaleswar in Maharashtra and flows through the state of Karnataka, Andhra Pradesh and finally merges into the Bay of Bengal by travelling a distance of 1400 km.

Kaveri: The Kaveri River is one of the large rivers in India which is originated from Talakaveri in the Western Ghats of Karnataka and flows through the states of Karnataka & Tamilnadu, finally merges into Bay of Bengal by travelling a distance of 765 km.

Narmada: Narmada River is the 5th Longest in the Indian sub-continent. It is also called the Life line of Madhya pradesh due to its huge contributions. Narmada River is originated from Narmada Kund, Amarkantak in Madhya Pradesh and merges into the Arabian Sea near Gujarat after travelling a distance of 1312 km.

Tapti: Tapti River is one of the major rivers in Central India. Its total length is around 724 km which flows through the states of Gujarat, Madhya Pradesh and Maharashtra and finally merges into the Gulf of Cambay of Arabian Sea near Gujarat.

Rowlatt Act and Jallianwallah Bagh Massacre

Rowlatt Act, 1919

During the 1st World War, Indians started revolution and movements for forming self-Government. To subdue(To bring under control) these movements, the British Government formed  the Rowlatt committee in 1919.The Rowlatt committee was named after Sydney Rowlatt, an English judge.

It was said in the report of this commission that:

(a) Nationalist newspapers should be banned.

(b) Just on suspicion, any Indian may be arrested and imprisoned for indefinite period and without any trial

Strong opposition was built up against this Anti-National Act. All the Indian members of the Central Law Committee raised their voices against this Act. Madanmohan Malavya, Mohammad Ali Jinnah, Mazhar ul Haque etc. resigned from the committee.

Jinnah said, “The fundamental principle of justice have been imported and the constitutional rights of the people have been unrooted at a time when there is no real danger to the state”.

Surendranath Banerjee and Gandhiji called for an all out movement against this Act. Amrita Bazar Patrika called this Black Act as a ‘gigantic blunder”. So nationwide strike was called by Gandhi on 30th March and 6th April 1919 A.D. Gandhiji sarcastically said “appeal nehi, ukil nehi, dalil nehi”, (there was no advocate, no appeal and no record). Gandhiji called the British rule “Satanism”. So historian Tarachand said, the transformation of a strong believer in non-violence like Gandhiji initiated the moral decline of the British Empire.

Jallianwala Bagh Massacre (Killings)

The British were threatened that this mass movement could break all lines of communications in the country and so they decided to suppress the nationalists. Several local leaders were arrested and Mahatma Gandhi was prohibited from entering Delhi.

On 13^th April 1919 several villagers had gathered at the Jallianwalla Bagh in Amritsar(Punjab) to attend a cattle fair on the occasion of Baisakhi. General Dyer blocked all the entry points to the ground and without any prior warning, opened fire on the hapless crowd.

As per the instruction of Dyer, four entrances were closed. After that the British soldiers started firing to the helpless throng the people with 50 rifles from a distance of hardly 100 years. They fired 1600 round of bullets within 10 minutes at a stretch. Many persons including children and women were killed and injured.

The merciless firing continued for 10-15 minutes leaving hundreds of people including women and children dead and wounded.

The Jallianwalla Bagh massacre triggered many protests, strikes, and clashes with policemen and attacks on Government buildings, across North India. The British Government suppressed these protests and humiliated the Satyagrahis.

SWADESHI MOVEMENT

Swadeshi Movement: Timeline and Important facts that you must know

                   

The Swadeshi Movement, now known as 'Make in India' campaign was officially proclaimed on August 7, 1905 at the Calcutta Town Hall, in Bengal. Boycott movement was also launched along with the Swadeshi movement. The movements included using goods produced in India and burning British-made goods.. Bal Gandadhar Tilak encouraged Swadeshi and Boycott movement after the British government decided the partition of Bengal.

Timeline of Swadeshi movement:

• In 1900, Bengal was the major province in British India. The Indian national movement began in Bengal and thus, Britishers decided to part Bengal. 

• When Lord Curzon, then Viceroy of India, announced the partition of Bengal in July 1905, Indian National Congress, initiated Swadeshi movement in Bengal. Swadeshi movement was launched as a protest movement which also gave a lead to the Boycott movement in the country.

• In 1909, the movement had spread across the country and people had started anti-partition and anti-colonial movements. In Andhra Pradesh, the Swadeshi movement was also known as Vandemataram movement

• In 1910, there were many secret associations that had been set up and there were many revolutionary movements, which were synonymous to Swadeshi movement

• Later movements by Mahatma Gandhi from 1915, such as Satyagraha movement, Non-Cooperation movement etc. were based on Swadeshi movement.

L. M. Bhole identifies five phases of the Swadeshi movement.

• 1850 to 1904: developed by leaders like Dadabhai Naoroji, Gokhale, Ranade, Tilak, G.V. Joshi.
• 1905 to 1917: Began with, and because of the partition of Bengal in 1905 by Lord Curzon.
• 1918 to 1947: Swadeshi thought shaped by Mahatma Gandhi, accompanied by the rise of Indian industrialists.
• 1948 to 1991: Widespread curbs on international and inter-state trade. India became a bastion of obsolete technology during the licence-permit raj.
• 1991 onwards: liberalization and globalization. Foreign capital, foreign technology, and many foreign goods are not excluded and doctrine of export-led growth resulted in modern industrialism.

Key people in the Swadeshi movement:
Bal Gangadhar Tilak
Bipin Chandra Pal
Lala Lajpat Rai
Aurobindo Ghosh
VO Chidambaram Pillai
Babu Genu

Summary

The Swadeshi and Boycott movements were started to oppose the Partition of Bengal.

The Boycott movement 
The idea of boycott was started after the failure of peaceful campaigns and petitions. Rabindranath Tagore and Ramendra called for the observance of Raksh Bandhan and Arandhan on the day of the partition.

The Swadeshi movement
This movement also started to oppose the partition of Bengal. ‘Swadeshi’ means of one’s own country according to this people should use goods produced within the country. This was lead by Lala Lajpat Rai, Bipin Chandra Pal and Bal Gangadhar Tilak, in the year 1905. Swadeshi movement received the support of the youth.

Spread of the Movements
British goods were burnt at public places. The youth of Bengal took active part in the movements. Women gave up the use of glass utensils and stopped wearing foreign bangles. Use of foreign paper was refused by Students. Foreign goods like sugar and cloth were not allowed to use. Those who didn't take part in this movement were socially boycotted.

Results of Boycott Movement
The Charkha which was a spinning wheel represented the country’s economic self-sufficiency.
This encouraged purchasers to buy native produced goods thereby boycotting British goods

Results of Swadeshi Movement

• Hindus and Muslims Cooperated
• Youth were ready to sacrifices.
• Social barriers like class and creed disappeared
• The press became fear less.
• The unity among the people increased.

Impact of Swadeshi and Boycott Movements

Nationalism
Lord Curzon intended to bring in differences among the Indians with the partition of Bengal, but they were against him. The movements encouraged nationalism and patriotism.

Native Industries
The movement contributed to the growth of native industries such as textile mills, match and soap factories, tanneries and potteries. Formation of banks and insurance companies too grew during this period.

Cultural Life
The culture of the National poetry and prose by great Indian writers such as Rabindranath Tagore, Mukunda Dass and RajaniKanta Sen had a great impact on Indians. Political journalism that resulted from the movements gave an impulse to freedom, liberty and self-reliance.

Education
National educational institutions were opened for imparting literacy, technical and physical education. The International University at Shantiniketan was one of them which was founded by Tagore in Bengal.

Mode of protests
People’s sacrifice and new mode of protest were to be seen all over. Thousands of people were arrested and sent to jail. Peaceful processions were subjected to lathi charges. New mode of protests like hartals, picketing, demonstration on roads, boycott of goods and institutions became part and parcel of Indian national movements.

What is Verbal and Non-Verbal communication

TYPES OF COMMUNICATIONS:

What is Allen Key

What is Allen Key

   A spanner designed to fit into and turn an Allen screw.

Allen key

what is Allen Screw

Allen screw

what is Studio Apartment

What Does "Studio Apartment" Mean?

              

Definition

A studio apartment consists of a single room plus a bathroom. The single room of the apartment must function as the kitchen, living room and bedroom. The kitchen area or "kitchenette" may be divided from the main living area, or simply be a counter and cabinets along one wall. A studio must be arranged for sleeping, eating and dining areas. The bathroom will be the only separate room in a studio apartment.

Considerations

Studio apartments can be a choice for singles, students, retired individuals and those who spend a lot of time away from home, but need someplace to sleep once in a while. Studio apartments are usually low-cost and have low utilities. In a city, studios can often be found near universities and public transportation. Studios appeal to someone who wants to live inexpensively and simply.

                   

Difference Between Sales Tax and VAT

Hundreds of sale transactions occur every moment around the world, on which the price of tax is inclusive which we never recognize. The tax charged on the sales can either be Sales Tax or VAT. The latter is an extension over the former and it is brought by the Government to fulfill the loopholes of the Sales Tax. Sales Tax is imposed by both Central and State Government while only the State Government has the right to levy Value Added Tax (VAT) on sale of goods.

Many people are still not known about the difference between Sales Tax and VAT. Here, in this article we are going to distinguish the two consumption tax along with their meanings.

Content: Sales Tax Vs VAT

1. Comparison Chart
2. Definition
3. Key Differences
4. Conclusion

Comparison Chart

BASIS FOR COMPARISON	SALES TAX	VAT
Meaning	Tax charged on the total value of the commodity, when the sale takes place is known as Sales Tax.	VAT is a tax charged at each level of the production and distribution chain whenever the value is added to the product.
Nature	Single point tax	Multi point tax
Tax Evasion	Can be possible	Cannot be possible
Cascading effect	Yes	No
Levied on	Total Value	Value Added
Account maintenance	Requires less effort because it is simple and easy to calculate.	Proper accounts should be maintained as it is comprehensive and complex to calculate.
Tax Burden	Falls on the consumer	Rationalized.
Input Tax Credit	Unavailable	Available
Area	Applies to the whole country.	Applies within the jurisdiction of the state.

Definition of Sales Tax

The type of indirect tax levied by the Central or State Government on the sale or purchase of merchandise is known as Sales Tax. The tax is applicable in the whole country.

It is an indirect tax because the tax burden falls on the consumer, but the responsibility to recover it, from the consumer and submit the collected tax to the tax authorities falls on the retailer or seller of the goods. Central Sales Tax is levied by the Government of India on interstate sales, whereas the State Government imposes sales tax on intrastate sales. However, many states have adopted their own Sales tax Act (VAT Act) on which tax is charged on the commodities at various rates.

There are many commodities which are still beyond the range of Sales Tax and that is why they are exempt from tax. In India, the tax is charged more on luxury goods or items of high cost or whose consumption is not good for health and the tax is charged less on necessities.

Definition of VAT

The tax, which is charged on the value addition to the commodity by each party is known as VAT. In other words, it is the difference between total output tax and total input tax. Here input tax refers to a tax on inputs, i.e. local purchases made from a registered dealer whereas output tax means a tax on outputs i.e. tax on sales made within the state.

VAT is an acronym used for Value Added Tax. It is a multilevel tax, which is charged when the transaction takes place in every single point of production and distribution. It is a destination based tax.

VAT is a consumption tax because the ultimate burden of the tax is borne by the final end consumer. It is also a type of indirect tax as the tax bearer is the consumer while the tax payer is the seller of goods. There are three variants of VAT: Gross Product Variant, Income Variant and Consumption Variant. Consumption Variant is the most widely used variant across the world. The methods of calculation of VAT are:

• Addition method
• Invoice method
• Subtraction method

Key Differences Between Sales Tax and VAT

The following are the major differences between Sales Tax and VAT:

1. Sales Tax is a tax on sales. Value Added Tax is a tax on value addition done by each party of the supply chain like supplier, producer, wholesaler, distributor or retailer, etc.
2. Sales Tax is a single-stage tax, but VAT is a multi-stage tax.
3. In VAT, the chances of tax evasion are very less as compared to Sales Tax in which evasion of tax can be done easily.
4. Double taxation is always there in case of Sales tax, whereas VAT is totally free from cascading effect.
5. The sales tax is levied on total value, but in VAT tax is charged only on the value added to the commodity.
6. Sales Tax is easy to calculate while VAT calculation requires time and effort.
7. In Sales Tax, the tax burden is borne by the consumer. On the other hand, the tax burden is rationalized.
8. Input Tax Credit (ITC) is available in VAT but not in Sales Tax.
9. The authority of levying sales tax is in the hands of both Central Government and State Government, but VAT is levied by the State Government only.

Conclusion

In India, VAT was introduced for the first time in the year 1986 as MODVAT i.e. Modified Value Added Tax but because of some shortcomings, Central Value Added Tax (CENVAT) was brought by the Government in 2000. Haryana became the pioneer in adoption of VAT system for the first time among all states of the country. Thereafter, some other states followed the foot steps of Haryana and opted to apply VAT. At present, VAT is applicable to all the states in the country.

From past few years, Sales tax is suffering from some controversies like it lacks transparency and double taxation which is the very reason for tax evasion. That is why, Sales Tax has been replaced by VAT.

Difference Between VAT and Service Tax

Tax is one of the main source of government revenue, which helps the economy to function smoothly. At present there is hardly anything left which is exempt from tax. The tax is levied both on physical and non-physical items. Here, we are talking about indirect taxes which are imposed on goods and services. The tax charged on goods are VAT, CST, Excise duty and Custom duty, whereas only Service Tax is charged on services. Among all these taxes, the tax which contributes the highest proportion of earnings to the government is VAT and Service Tax. In this article you will find the differences between VAT and Service Tax.

Content: VAT Vs Service Tax

1. Comparison Chart
2. Definition
3. Key Differences
4. Conclusion

Comparison Chart

BASIS FOR COMPARISON	VAT	SERVICE TAX
Meaning	Tax charged on the value addition to commodities is known as VAT.	Tax charged on the services provided is known as Service Tax.
Nature	Multi point tax	Single point tax
Charged on	Both on production and trading of goods.	Services provided.
Levied by	State Government	Central Government
Statute	Concerned State Act	Finance Act, 1994
Introduced in the year	2005	1994
Rate	Variable, for different types of commodities	Uniform for all services.
Area	Within the state	All over the country subject to certain exception.

Definition of VAT

VAT is an abbreviated form of the term Value Added Tax. As its name suggests, it is a tax on value addition made to a particular commodity by a party at the time of its production and distribution. The taxpayer will get input tax credit on the tax already paid on the commodity at the previous stage, i.e. set off is available to the taxpayer for the tax paid on the preceding stage.

The right to levy VAT is in the hands of the State Government, that is why it is imposed only when the sales are made within the state. Central Sales Tax is charged in case of interstate sales. It is also known as multilevel tax because it is levied at each stage of the supply chain of raw material, whenever the value is added to the product, till it is sold to the final end consumer. The burden of VAT is borne by the consumer itself, but paid by the seller to the tax authorities.

VAT can be easily calculated by simply deducting input tax from output tax where input tax is tax on intrastate purchases from a registered dealer while output tax is a tax on intrastate sales.

More than 160 countries of the world had adopted the VAT system. In India, the VAT rate varies from state to state, however, it is 0% for tax free commodities, 1% for precious stones, jewelry, etc, 4% for necessities, 20% on luxury goods and 13.5% on all other goods not falling in the above categories.

Definition of Service Tax

The tax charged on the services provided is known as Service Tax. The Central Government has the authority to levy service tax so it is applicable in the whole country except the state of Jammu & Kashmir. The tax liability for the services can be determined on the basis of Point of Taxation.

Normally, the person who renders services is liable to pay service tax, but the burden falls on the service receiver. Although, there are some notified services on which the tax is to be paid by the service receiver itself, this is known as a Reverse Charge Mechanism. Furthermore, there are some services on which the tax is to be paid by both service provider and service receiver, this is known as a Joint Charge Mechanism.

In India, the service tax was first introduced through the Finance Act, 1994, recommended by the Dr. Raja Chelliah Committee. At that time it was levied only on three services, i.e. stock broking, telecommunication and insurance, at the rate of 5%. At present the rate of service tax is 14% and it is levied on all the services except those which are included in the Negative List. The Negative List is the list of the selective services which are exempt from tax.

Key Differences Between VAT and Service Tax

The following are the major differences between VAT and Service Tax:

1. Tax imposed on the production and sale of a commodity is known as Value Added Tax (VAT). Tax on services rendered is known as Service Tax.
2. VAT is a multi point tax, whereas Service Tax is a single point tax.
3. VAT is charged on physical items i.e. goods while Service Tax is charged on non-physical items i.e. services.
4. VAT is imposed by the State Government but Services Tax is imposed by Central Government.
5. VAT is governed by the statute of the respective state. On the other hand, Service Tax is governed by the Finance Act, 1994.
6. VAT was introduced in the year 2005, all over the country. Conversely, Service Tax was introduced for the first time in the year 1994.
7. The VAT rate is different for different category of commodities. In contrast to Service Tax, has a flat rate.
8. VAT is applicable within the jurisdiction of the state, whereas Service Tax is applicable all over the country except in Jammu & Kashmir.

Conclusion

Both the VAT and Service Tax are indirect taxes, that is why they are under the control of Central Board of Excise and Customs (CBEC). However, Goods and Services Tax (GST) is going to replace the VAT and Service Tax in India in the next few years after which a single Act will govern both the taxes.

Difference between Direct and Indirect Tax

Difference Between Direct Tax and Indirect Tax

Everyone of us, have heard about the tax, it is a compulsory financial obligation, payable to the government. But this definition is not sufficient to understand the complete tax system. It has been mainly divided into two broad categories Direct tax and Indirect tax, comprising of the different nature of taxes. Come lets understand the meaning and the difference between Direct Tax and Indirect Tax.

Content: Direct tax Vs Indirect Tax

1. Comparison Chart
2. Definition
3. Key Differences
4. Similarities
5. Conclusion

Comparison Chart

BASIS FOR COMPARISON	DIRECT TAX	INDIRECT TAX
Meaning	Direct tax is referred to as the tax, levied on person's income and wealth and is paid directly to the government.	Indirect Tax is referred to as the tax, levied on a person who consumes the goods and services and is paid indirectly to the government.
Burden	The person on whom it is levied bears its burden.	The burden of tax can be shifted to another person.
Types	Wealth Tax, Income Tax, Property Tax, Corporate Tax, Import and Export Duties.	Central Sales tax, VAT (Value Added Tax), Service Tax, STT (Security Transaction Tax), Excise Duty, Custom Duty.
Evasion	Tax evasion is possible.	Tax evasion is hardly possible because it is included in the price of the goods and services.
Inflation	Direct tax helps in reducing the inflation.	Indirect taxes promotes the inflation.
Levied on	Persons, i.e. Individual, HUF (Hindu Undivided Family), Company, Firm etc.	Consumers of goods and services.
Nature	Progressive	Regressive

Definition of Direct Tax

A direct tax is referred to as a tax levied on person’s income and wealth and is paid directly to the government, the burden of such tax cannot be shifted. The tax is progressive in nature i.e. it increases with an increase in the income or wealth and vice versa. It levies according to the paying capacity of the person, i.e. the tax is collected more from the rich and less from the poor people. The tax is levied and collected either by the Central government or State government or the local bodies.

The plans and policies of the Direct Taxes are being recommended by the Central Board of Direct Taxes (CBDT) which is under the Ministry of Finance, Government of India.

There are several types of Direct Taxes, such as:

• Income Tax
• Wealth Tax
• Property Tax
• Corporate Tax
• Import and Export Duties

Definition of Indirect Tax

Indirect Tax is referred to as a tax charged on a person who consumes the goods and services and is paid indirectly to the government. The burden of tax can be easily shifted to the another person. The tax is regressive in nature, i.e. as the amount of tax increases the demand for the goods and services decreases and vice versa.  It levies on every person equally whether he is rich or poor. The administration of tax is done either by the Central government or the State government.

There are several types of Indirect Taxes, such as:

• Central Sales tax
• VAT (Value Added Tax)
• Service Tax
• STT (Security Transaction Tax)
• Excise Duty
• Custom Duty
• Agricultural Income Tax

Key Differences Between Direct and Indirect Taxes

1. The tax, which is paid by the person on whom it is levied is known as the Direct tax while the tax, which is paid by the taxpayer indirectly is known as the Indirect tax. The direct tax is levied on person’s own income and wealth whereas the indirect tax is levied on a person who consumes the goods and services.
2. The main difference between the direct and indirect tax is that the burden of direct tax cannot be shifted whereas the burden of indirect tax can be shifted.
3. The evasion of tax is possible in case of direct tax, if the proper administration of the collection is not done, but in case of indirect tax, the evasion of tax is not possible since the amount of tax is charged on the goods and services.
4. The direct tax is levied on Persons, i.e. Individual, HUF (Hindu Undivided Family), Company, Firm etc. On the other hand, the indirect tax is levied on the consumer of goods and services.
5. The nature of a direct tax is progressive, but the nature of indirect tax is regressive.
6. Direct tax helps in reducing the inflation, but the indirect tax sometimes helps in promoting the inflation.

Similarities

• Payable to the government.
• Penalty for the non-payment.
• Interest on Delayed Payment.
• Improper administration can lead to tax avoidance or tax evasion.

Conclusion

Both the direct and indirect tax has its own merits and demerits. If we talk about the direct taxes they are equitable because they are charged on person, according to their paying ability. The direct tax is economical because its cost of collection is less but however, it doesn’t cover every section of the society.

On the other hand, if we talk about the indirect tax, they are easy to realize as they are included in the price of the product and services, and along with that it has a good coverage of every section of the society. One of the best advantages of the indirect tax is, the rate of tax is high for harmful products as compared to the other goods which are necessary for life.