The word ?tax? is derived from Latin word taxo whose literal translation is rate. It is a financial charge imposed upon an Individual or any legal entity who is obligated to pay it (taxpayer) by a state or functional equivalent of a state in such a way that failure to pay the same or evasion from or resistance to collection of the same , is punishable by law. There are two categories of the taxes. First one is direct taxes and the second one is indirect taxes. The direct tax is one which cannot be shifted from the taxpayer to someone else whereas the indirect tax is one which can be shifted by taxpayer to someone else.