Direct taxes are levied directly on individuals and corporations, while indirect taxes are levied on goods and services. The document discusses the key types of indirect taxes including service tax, VAT, excise duty, and customs duty. It provides details on the meaning and features of service tax, noting it is an indirect tax levied on specified services and administered by CEEC to avoid double taxation, excluding small service providers. Examples of taxable services are also listed such as stock broking, telephone, insurance, travel agents, event management, beauty parlors, and photography.