What are the main differences between tax and other payments.

1.	What are the main differences between tax and other payments.
Answer» Tax: 1. It is a compulsory payment to the Government. 2. Tax payer cannot expect direct benefit after paying taxes. 3. Tax payer has to pay the tax once it is imposed. Otherwise he/she will be penalised. 4. The purpose of levying tax is general. Money is used for the welfare of the people. 5. Eg: Income tax, gift box, wealth tax etc., Payments: 1. It is voluntary payment for getting any service. 2. Once payment is done, the person can expert direct benefit from it. 3. Payment need not be paid if the service is not necessary for a person. 4. The purpose of making payments is to enjoy certain special benefits. 5. Eg: Driving license, stamp fee, fee for Government Registration etc.,

Answer»

Tax:

1. It is a compulsory payment to the Government.

2. Tax payer cannot expect direct benefit after paying taxes.

3. Tax payer has to pay the tax once it is imposed. Otherwise he/she will be penalised.

4. The purpose of levying tax is general. Money is used for the welfare of the people.

5. Eg: Income tax, gift box, wealth tax etc.,

Payments:

1. It is voluntary payment for getting any service.

2. Once payment is done, the person can expert direct benefit from it.

3. Payment need not be paid if the service is not necessary for a person.

4. The purpose of making payments is to enjoy certain special benefits.

5. Eg: Driving license, stamp fee, fee for Government Registration etc.,

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