What is excise duty and its types?
What is excise duty and its types?
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 is excise duty explain features?
Allocation of sources between centre and states under the constitution of India grants to the Central Government power to impose “Duties of excise on tobacco and other goods manufactured or produced in India, except alcoholic liquors for human consumption, opium, narcotics, but including medical and toilet preparations …
What are the objectives of excise duty?
Types of Excise Duty:- Its objective is to generate additional revenue for some specified object. It is applicable at the rates specified in schedule second to Central Excise Tariff Act, 1985.
What is excise duty and custom duty?
Excise duty refers to the taxes levied on the manufacture of goods within the country, as opposed to custom duty that is levied on goods coming from outside the country.
How does excise duty work?
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 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 imposed after the product has reached the final stage of selling while excise duty is imposed right after the product has been manufactured.
What do you mean by excise duty?
excise duty. 1. A percentage levied on manufacture, sale, or use of locally produced goods (such as alcoholic drinks or tobacco products). 2. A percentage tax levied on a company’s revenue, instead of (like income tax) on the company’s income.
What is the difference between excise duty and sales tax?
Excise duty is on the production of goods whereas sales tax is levied on sale of goods. Excise duty is paid by the manufacturer while the burden of sales tax is borne by the end consumer.
Is excise duty a tax borne or a tax collected?
Excise duty is a tax that though borne by the consumer, is collected by the producer and therefore makes it easy to administer. The introduction of excise duty on traditionally non-excisable products as well as services has gone to dispel the notion that excise duty is a ‘sin tax’.
What is excise duty all about?
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).
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