Write the difference between tax and duty.

The major differences between tax and duty are as follows −

Tax	Duty
It is the compulsory amount paid to the government. It is charged on income, wealth, service, sales etc. Direct tax and indirect tax are types of taxes. Wide scope. Central/state governments will impose tax.	It is an amount charged by government on imports/exports and manufacture of goods. It is charged on goods and financial transactions. Custom duty and excise duty are types of duty. Narrow scope. Central government will impose duty.

Published on 25-Jul-2020 10:28:29