Payment 5. Excise duty is a kind of indirect tax charged on the sale of certain products. Does a manufacturer of goods require to obtain a license from the Central Excise department for payment of Central Excise duty? Excise duty is levied by the federal or centeral government on manufecturing of goods withen the country wheareas Custom duty is charged on goods imported from other countries. This a high risk tax for HMRC and therefore the controls around the tax can be fairly onerous, with clear audit trails and monitoring being of paramount importance. An excise duty on motor cars is paid in the first instance by the manufacturer of the cars; ultimately, the manufacturer transfers the burden of this duty to the buyer of the car in the form of a higher price. Administration Importance of Central Excise Duty in Respect of Revenue Excise Duty is the most important source of income of … The following features of the excise duty: Imposition; Nature; Basis of Taxation; Payment; Scope; Maintenance of Records; Excise rate; Administration; Importance of Central Excise Duty in Respect of Revenue Excise Duty is the most important source of income of Indian Govt. This type of excise duty was levied on special goods classified under the Second Schedule to the Central Excise Tariff Act, 1985. Its most severe effects were felt by the wholesale sector and the impact was exacerbated by … This tax is now known as the Central Value Added Tax(CENVAT). Customers may not get to see this amount directly as the company needs to pay them to the excise departments according to the government’s infrastructure. This duty is levied at the rates specified in the Schedule-I to Central Excise Tariff Act, 1985. 13 7 Application of the provisions … There are seven types of excise taxes that are presently in operation in India. What was the weather in Pretoria on 14 February 2013? This duty applied on all goods except salt. Why don't libraries smell like bookstores? States levy taxes on alcohol according to the same practice as was prevalent before the rollout of GST. Short title This Act may be cited as the Excise Duty Act. Be the first to answer! As a result, the manufacturers increase the price of the end products to accommodate that cost. If you are interested in sponsoring a future feature or want to learn more about Tax-News.com advertising opportunities, please click here. The general rate of Excise Duty is 12% and 3% education cess there on So, at present normal excise rate is 12.36%. All Rights Reserved. What is excise duty all about?. Excise Duty is a form of indirect tax that is levied on goods that have been manufactured in the country. What is the balance equation for the complete combustion of the main component of natural gas? excise duty Features; excise duty Features.  The central excise duty is a tax on manufacture or production of goods.Hence,the liability to pay excise duty lies on manufacturer or the producer 15. Excise duty. Maintenance of Records 7. Custom Duty will not be charged on food items worth up to Rs.12,000. Central Excise Duty is an indirect tax imposed on the goods manufactured in India. It is a tax on the production or sale of a good. Excise taxes are taxes required on specific goods or services like fuel, tobacco, and alcohol. A simple registration with the Central Excise department will be enough. 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. After GST was introduced, excise duty was replaced by central GST because excise was levied by the central government. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply. A specific duty of say Rs 11 per kilolitre would mean that even if the cost goes up the tax incidence would remain the same. This duty is applicable to majority of the excisable goods. National Calamity Contingent Duty It is also referred to as NCCD and is applied as per the Section 136 of the Finance Act, 2001. Scope 6. Copyright © 2021 Multiply Media, LLC. EA court abolishes excise duty imposed by Nairobi on Dar glass exports In its application, Kioo Limited claimed that authorities in Kenya moved to implement Business Laws (Amendment) Act 2020, section 41 and the first schedule to the Excise Duty Act of 2015 which imposed the excise duty on its glass exports with effect from March 2020. Salient features of Central Excise Duty Act 2 Comments Section 3 of Central Excise Act the ‘charging Section’ states that there shall be levied and collected duties on all excisable goods (excluding goods produced or manufactured in special economic zones) which are … The Central Excise (Amendment) Rules, 2002 Rule 4 emphasizes upon the same and notifies that the removal of goods for sale is not a taxable event; it is only for the sake of convenience. Basic Excise Duty – Basic duty of excise levied under Central Excise Act, Basic excise duty (also termed as Cenvat as per section 2A of CEA) is levied at the rates specified in first schedule to central Excise Tariff Act. 2. However, the Goods and Services Tax (GST), introduction in July 2017, subsumed many types of excise duty. However, as per rule 5 of the Central Excise Rules, 2002, the rate of duty applicable to any excisable goods is the rate in force on the date when such goods are removed from the factory. Basis of Taxation 4. India's GST - One Nation, One Tax Regime By Tax-News.com Editorial. In the case of tobacco or alcohol, for example, producers may be given (or required to buy) a certain bulk amount of excise stamps from the government and are then obliged to affix one to every packet of cigarettes or bottle of spirits produced. Copyrights © 2021 Business Standard Pvt Ltd. All rights reserved. The Govt. Asked by Wiki User. Basic Excise Duty Excise Duty, imposed on all excisable goods other than salt produced (or) manufactured in India. Features of alcohol excise duty fraud . An indirect tax paid to the Government of India by producers of goods, excise duty is the opposite of Customs duty in that it applies to goods manufactured domestically in the country, while Customs is levied on those coming from outside of the country. The customer does not pay excise duty directly to the authorities, but it is added to the cost of the product by the producer or merchant and then passed on to the consumer by way of increased prices. The duty of central excise is charged on four bases: 1.Specific duty 2.Tariff duty 3.Maximum retail price 4.ad -valorem basis This category of excise duty was levied on goods that were classified under the first schedule of the Central Excise Tariff Act, 1985. Excise Duty is an indirect tax. It is a procedure designed to bring in orderly conduct in the matter of levy and collection of excise duty when both manufacture and clearances are a continuous process. 10 4 Filing of return and payment of duty etc 11 5 Zero rate of duty and drawback of duty etc. What are the Features of excise duty? The Central Excise Rules, 1944, specify a distinct procedure for payment of excise duty leviable on manufactured goods. Imposition 2. 14. As per charging section 3 of the Central Excise Act, 1944, excise duty is levied on all excisable goods which are produced or manufactured in India. 0 0 1. Excise officers also had to keep themselves up to speed on frequently-changing legislation – and, as far as this legislation was concerned, the most important act passed in the history of taxation on whisky was the 1823 Excise Act. Today, excise duty applies only on petroleum and liquor. The purpose of this notice is to provide information concerning the CRA's new excise stamp and some of its security features. If the goods were subsidised in the country of export: If the goods have entered in increased quantities: If the dumped imports cause or threaten to cause material injury or material retardation of the establishment of a domestic industry. Currently, the general rate of excise duty on non-petroleum products is 12%. Be cited as the excise duty duty applies only on petroleum and liquor Countervailing duty: the... 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