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Discussion > Income Tax > Others >

Tax vs. duty vs. cess

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C.A.

[ Scorecard : 809]
Posted On 03 April 2012 at 22:25 Report Abuse

Whats the difference between these three????????



Devendra
M.COM CA Final [Group 2- Cleared] CS Professional

[ Scorecard : 4078]
Posted On 03 April 2012 at 22:37

1) Tax is paid on the Income earned, Service rendered and Sales made during the year.

For Eg : Income Tax, Service Tax, VAT / Sales Tax, Wealth Tax

 

2) Whereas the tax which is leveid specifically on goods is called Duty.

For Eg : Customs Duty, Excise Duty

 

3) Cess is also a Tax. But in India the Cess which is collected is specifically utilised for the Education.

For Eg : Education Cess, Secondary Higher Education Cess

 

 

Regards,

Devendra



Total thanks : 2 times



CA. Abhishek K. Pandey
C.A.

[ Scorecard : 809]
Posted On 04 April 2012 at 08:34

Thanks. Can you please tell that why there was need to distinguish between the two?? I mean why don't they simply use "tax" instead of "duty" in case of goods as well??



Devendra
M.COM CA Final [Group 2- Cleared] CS Professional

[ Scorecard : 4078]
Posted On 04 April 2012 at 10:48

Tax is levied on Individuals and Duty is leveid on goods which is paid by the individuals.


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