Tax [fr. tasg, Wel.; taxe, Fr. and Dut.], an impost; a tribute imposed on the subject; an excise; tallage.
A monetary charge imposed by government on persons, entities or properly to yield public revenue, Black's Law Dictionary, 7th Edn., p. 1469.
Some general principles of taxation have been said to be:-
(1) The subjects of every State ought to contribute to the support of the Government as nearly as possible in proportion to their respective abilities; that is, in proportion to the revenue which they respectively enjoy under the protection of the State. In the observation or neglect of this maxim consists what is called the equality or inequality of taxation.
(2) The tax which each individual is bound to pay ought to be certain and not arbitrary. The time of payment, the manner of payment, the quality to be paid, ought all to be clear and plain to the contributor, and to every other person.
(3) Every tax ought to be levied at the time, or in the manner, in which it is most likely to be convenient for the contributor to pay it.
(4) Every tax ought to be so contrived as both to take out and keep out of the pockets of the people as little as possible over and above what it brings into the public treasury of the State.
Taxes are either direct or indirect. A direct tax is one that is demanded from the very persons who are intended or desired to pay it. Indirect taxes are those which are demanded from one person, in the expectation and intention that he shall indemnify himself at the expense of another, such as the excise or customs. Taxes may be laid on any one of the three sources of income (rent, profits, or wages); or a uniform tax on all of them, Smith's Wealth of Nat., b. 5, ch. ii.; Mill's Pol. Econ., b. 5, chs. Ii., iii.
All duties of Inland Revenue are collected by the Commissioners of Inland Revenue (Inland Revenue Regulation Act, 1890 53 & 54 Vict. c. 21), subject to the direction of the Treasury, of excise, by the Commissioners of Customs and Excise: see Finance Act, 1908, s. 4, and Orders in Council made thereunder. As to the collection of taxes for a limited period under the authority of a mere resolution of the House of Commons, see the Provisional Collection of Taxes Act, 1913 (3 Geo. 5, c. 3). See Chitty's Statutes, tit. 'Revenue.' See also DEATH DUTIES; ESTATE DUTY; INCOME-TAX; LAND-TAX.
A 'tax' is a compulsory exaction of money by public authority for public purposes enforceable by law and is not payment for services rendered, The Commissioner v. Sri Lakshmindra Thirtha Swamiar of Sri Shirur Mutt, AIR 1954 SC 282 (285): (1954) SCR 1005.
A tax is a compulsory exaction of money by a public authority for a public purpose enforceable by law and is not a payment for any specific service rendered. The levy of a tax is for the purpose of general revenue which when collected forms part of the public revenues of the State. There is no element of quid pro quo between the tax payer and the public authority, State of Maharashtra v. Salvation Army, AIR 1975 SC 846 (850): (1975) 1 SCC 509: (1975) 3 SCR 475.
Tax includes fee in the wider sense of the term, Southern Pharmaceuticals and Chemicals v. State of Kerala, AIR 1981 SC 1863: (1981) 4 SCC 391: (1982) 1 SCR 519.
The rural employment cess is a 'tax', Buxa Dooars Tea Company Ltd. v. State of West Bengal, AIR 1989 SC 2015 (2018): (1989) 3 SCC 211: (1989) 3 SCR 293.
Tax is the amount payable as a result of the charging provision. It is a compulsory exaction of money by a public authority for public purposes, the payment of which is enforced by law, Pratibha Processors v. Union of India, AIR 1997 SC 138 (148): (1996) 11 SCC 101.
Under s. 4(4)(d)(ii) of the Central Excise Act what is to be excluded from the assessable value is the amount of duty of excise, sales tax and 'other taxes'. Taxes, as such, are not defined in the Central Excise Act. If the expression 'tax' is to be understood in the absence of any definition, it would certainly cover any levy. In D.G. Gose & Co. (Agents) (P) Ltd. v. State of Kerala, [1980 (2) SCC 410] a broad meaning had been given to the expression 'tax'. In such an event, administrative charges would be covered under s. 4(4)(d)(ii) as 'other taxes', because it is a compulsory exaction made under an enactment and, therefore, a duty or impost and such impost must be held to be in the nature of a 'tax' covered by the aforesaid provisions, C.C.E v. Kisan Sahkari Chinni Mills Ltd., (2001) 6SCC 697. [Uttar Pardesh Sheera Niyantran Adhiniyam, 1964 (24 of 1964), s. 8(4) and (5)(a) inserted by Central Excise Tariff Act, 1985 (5 of 1986)]
Tax, are enforced in proportional contributions from persons and property, levied by the state by virtue of its sovereignty for the support of government and for all public needs. This definition of taxes, often referred to as approved, expressly or otherwise, by many different courts. While this definition of taxes characterises them as 'contributions', other definitions refer to them as 'imposts duty' or 'impost charges', 'burdens' or 'exactions' but these variations' on phraseology are of no practical importance, The Law of Taxation; I. Thomas, Cooley, 4th Edn., 1924, p. 61.
Tax, includes any toll, crate, cess fee or other import leviable or levied under the Act. [M.P. Municipalities Act, 1961, s. 3(37)]
Tax, is a charge, a pecuniary burden for the support of Government, A Dictionary of Law, Willium C. Anderson, 1889, p. 1006.
Tax, is a compulsory payment of a percentage of income, property value, sales price, etc., for the support of a Government, Webster American Dictionary, p. 1494.
Means a monetary charge imposed by the govern-ment on persons, entities, or property to yield public revenue, Black's Law Dictionary, 7th Edn., p. 1469.
Means a sales tax or purchase tax, leviable or as the case may be, payable, under this Act and includes any amount payable by way of composition. [Maharashtra Value Added Tax Act, 2002, s. 2(29)]
Means a tax leviable and payable under this Act on sales or purchase of goods and includes lump sum tax leviable or payable under s. 14. [Gujarat Value Added Tax Act, 2003, s. 2(27)]
Means the tax payable under this Act. [West Bengal Value Added Tax Act, 2003, s. 2(45)]
Tax, shall be deemed to include tolls, rate, market dues, fees etc., but not the vice-versa, Ibadatali v. Municipal Council Khargone, AIR 1994 MP 58.