Tax and Fee

 DIFFERENCE BETWEEN TAX AND FEE? 

                                         TAX

(1) Tax is the compulsory payment to the Government without getting any direct benefits.

(2) In regard to tax, there is not and must not always be, direct correlation between the tax and the service intended to be rendered.

(3) Tax is compulsory payment.

(4) In tax is imposed on a person he has to pay it otherwise he has to be penalized.

(5) Example of Tax:-

  Income Tax, Gift Tax, VAT, Wealth Tax etc.

 

                                            FEE

(1) Fee is the voluntary payment for getting service.

(2) In regard to fee, there is and must always be , correlation between the fee collected and service intended to be rendered.

(3) Fee is voluntary payment.

(4) On the other hand, fee is not paid if the person does not want to get the service.

(5) Fee payer can get direct benefit for paying fee.

(6) Example of Fee:- 

Stamp fee, driving license fee, Government registration Fee etc.