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.

Updated on: 2020-07-25T16:12:29+05:30

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