Q.(a) Distinguish between Direct taxes and Indirect taxes. (Any 5)

(a) In a direct tax the impact and incidence fall on the same person and cannot be shifted (income tax, corporate tax); in an indirect tax they fall on different persons because the burden is passed on to the consumer (GST, customs duty). (b) Ancient Tamil Nadu was a flourishing maritime-trade region whose coastal ports linked the Tamil kingdoms with Rome, Greece, Egypt and Southeast Asia.

(a) Difference between Direct taxes and Indirect taxes (any five):

1. Meaning/shifting of burden — in a direct tax the burden cannot be shifted (impact and incidence are on the same person); in an indirect tax the burden is shifted from the taxpayer to the final consumer.
2. Who bears it — a direct tax is paid and borne by the same person; an indirect tax is paid by the seller but ultimately borne by the buyer.
3. Levied on — direct taxes are levied on income and wealth; indirect taxes are levied on goods and services.
4. Examples — direct taxes include income tax and corporate tax; indirect taxes include GST and customs duty.
5. Nature — direct taxes are generally progressive (the rich pay a higher rate); indirect taxes are regressive (the same rate falls on rich and poor alike).
6. Collection — direct taxes are collected directly from the assessee; indirect taxes are collected through sellers at the time of sale.

(b) Coastal trade in ancient Tamil Nadu:

Ancient Tamil Nadu, under the Chera, Chola and Pandya kingdoms, was famous for its lively coastal and overseas (maritime) trade. Its long coastline had several busy ports:

1. Puhar (Kaveripoompattinam) — the great port of the Cholas, a leading centre of overseas trade.
2. Korkai — the pearl-trading port of the Pandyas on the south-east coast.
3. Musiri (Muziris) and Tondi — west-coast ports of the Cheras trading in pepper and spices.
4. Arikamedu — a coastal trading settlement that had direct contact with the Romans. …