Who is liable to pay excise?
The liability to pay tax excise duty is always on the manufacturer or producer of goods. There are three types of parties who can be considered as manufacturers: Those who personally manufacture the goods in question. Those who get the goods manufactured by employing hired labour.
How does excise duty different from customs duty?
Difference between Excise Duty and Custom Duty
While excise duty is levied on goods produced or manufactured within the country, custom duty applies to the goods that are sold in India but were produced in a different country. Excise duty is to be paid by the manufacturer of the goods and not by the consumer.
What is a excise duty?
An excise or excise tax (sometimes called an excise duty) is a type of tax charged on goods produced within the country (as opposed to customs duties, charged on goods from outside the country). It is a tax on the production or sale of a good. This tax is now known as the Central Value Added Tax (CENVAT).
What are the basis for levy of excise duty?
Today, excise duty applies only on petroleum and liquor. Excise duty was levied on manufactured goods and levied at the time of removal of goods, while GST is levied on the supply of goods and services. Alcohol does not come under the purview of GST as an exclusion mandated by constitutional provision.
What is excise duty how it is calculated?
The sales price of an item is INR 23,000. The assessable value for excise is INR 20,000. … Basic Excise Duty (BED) is 16% on Assessable value for excise. Additional Excise Duty (AED) is 4% calculated on assessable value for excise and BED. Special Excise Duty (SED) is 4% calculated on assessable value for excise and BED.
What is the difference between VAT and excise duty?
VAT is the tax added on goods as it moves from the initial stage of manufacturing to the point of sale while excise duty is the tax added on the manufacturing of goods. … VAT is paid by the consumers who buy the product whereas excise duty is paid by the company who is making the product.
What are the objectives of excise duty?
By making products more expensive, Excise Duty is supposed to discourage the consumption or waste of goods that are deemed to be harmful to consumers’ health or damaging to the environment. Typically, Excise Duty covers alcohol, tobacco, and some energy products.
What are the features of excise duty?
Nature or Characteristics of Excise duty Central Excise duty is a central tax imposed by Government of India.
The following features of the excise duty:
- Basis of Taxation.
- Maintenance of Records.
- Excise rate.
Is excise duty a direct tax?
An excise duty is a type of indirect tax that is levied on the sales of particular goods. This tax is not paid directly by the customer but is passed on to the consumer by a merchant or producer of goods as a part of the price of the product.
What are the types of excise duty?
Here are the different types of excise duties:
- Basic Excise Duty: Basic Excise Duty is levied under Section 3 of the Central Excises and Salt Act, 1944. …
- Special Excise Duty: Central Excise Duty is charged under Section 37 of the Finance Act, 1978. …
- Education Cess on Excise Duty: According to Section 93 of Finance (No.
What are the different types of customs duty?
Types of custom duties
- Basic Customs Duty (BCD)
- Countervailing Duty (CVD)
- Additional Customs Duty or Special CVD.
- Protective Duty,
- Anti-dumping Duty.
- Education Cess on Custom Duty.
What is state excise?
Excise duty on alcohol, alcoholic preparations, and narcotic substances is collected by the State Government and is called “State Excise” duty. For most of the states, excise duty is the second largest tax revenue after sales taxes (state VAT).
Is excise duty an operating expense?
Excise duty should be considered as a manufacturing expense and like other manufacturing expenses be considered as an element of cost for inventory valuation. … Excise duty cannot be treated as a period cost.