Tax vs. duty vs. cess

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

Replies (3)

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

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??

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

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