Difference between Duty & Tax

[Former Member]

Hi all,

Can anyone explain wht is the diff between duty and TAX.

Regards,

k.Vivek

[Former Member]

A <b>tax</b> is a financial charge or other levy imposed on <u>an individual</u> or a legal entity by a state or a functional equivalent of a state

In economics, a <b>duty</b> is a kind of tax, often associated with customs, a payment due to the revenue of a state, levied by force of law.

A duty differs from a tax in being levied on specific commodities, financial transactions, estates, etc., and <u>not on individuals</u>;

It is right to talk of import duties, excise duties etc., but not of income tax as being levied on a person in proportion to his income.

[Former Member]

In real terms Duty and tax means the same there is no difference

we say excise duty, customs duty, sales tax, etc they all come under indirect taxes.

Then there is something called a surcharge which is applied on the given tax / duty like

Education Cess and Higher and Secondary Education Cess.

And the personal tax and company tax come under Direct taxes.

Deepak