Direct taxes are those levied directly on the income or wealth of individuals or entities. Compliance involves accurate calculation, timely payment, and reporting to tax authorities.
Indirect taxes are levied on goods and services, and compliance involves the correct collection, payment, and reporting of these taxes.
Direct and indirect tax compliance are essential components of a well-functioning tax system. While direct tax compliance focuses on income and wealth, indirect tax compliance is concerned with the taxation of goods and services. Both require meticulous record-keeping, timely payments, and accurate reporting to avoid legal issues and penalties.
