Differences between Uses-Permission and Permissions tag in AndroidManifest.xml

What is the difference between Uses-Permission and Permissions tag in AndroidManifest.xml . I understood uses-permission tag as it is used to access Internet,Location from our application. But I did not understand when and why should we use permissions tag in Manifest file and what is its difference from uses-permission.

Quoting the documentation:

To enforce your own permissions, you must first declare them in your AndroidManifest.xml using one or more <permission> tags. For example, an application that wants to control who can start one of its activities could declare a permission for this operation as follows:

<manifest xmlns:android="http://schemas.android.com/apk/res/android"
    package="com.me.app.myapp" >

    <permission android:name="com.me.app.myapp.permission.DEADLY_ACTIVITY"
        android:label="@string/permlab_deadlyActivity"
        android:description="@string/permdesc_deadlyActivity"
        android:permissionGroup="android.permission-group.COST_MONEY"
        android:protectionLevel="dangerous" />

</manifest>

Hence, <uses-permission> is when your application is seeking the user's permission to use some feature, while <permission> is when your application is requiring other apps to seek the user's permission to use some feature of yours.