1.

Differentiate tax and fee?

Answer»

Tax:

  • A tax is a compulsory payment made to the government.
  • People on whom a tax is imposed must pay the tax.
  • There is no quid pro quo between a taxpayer and public authorities. This means that the tax payer cannot claim any specific benefit against the payment of a tax.

Fee:

  • Fees are another important source of revenue for the government.
  • A fee is charged by public authorities for rendering a service to the citizens.
  • The government provides certain services and charges certain fees for them.

For example, fees are charged for issuing of passports, driving licenses, etc.


Discussion

No Comment Found

Related InterviewSolutions