Explain Different Kinds of Excise Duty in Detail

It is a tax on the production or sale of a good. Ad Valorem Excise Taxes.

Excise Tax Definition Types Calculation Examples

Explain the prevention or detection of illegally imported goods under Customs Act 1962.

. The person or business who is the authorised warehouse-keeper of the place where excise products are produced processed stored dispatched or received. Which is levied on the small list of items and which falls under the Central Excise Tariff Act 1985. Excise duties may be paid by.

The following features of the excise duty 1. The actual amount of excise duty payable on excisable goods is dependent upon the rate of duty. Ad-valorem duties impose greater burden on the richer income group.

To file an iTax excise return you need to select Excise in. The sender recipient transporter or 3rd party providing a movement guarantee - who caused the goods to leave the duty-suspension arrangement. A number of provisions are common for excise duty and custom duty with the major difference being the place of production of the goods in question.

C Operating in a rule-based system. Excise Duty can easily be classified into two types. Customs are levied on goods that become taxable items at the border while excise is levied on goods.

Types of Excise Duty. Illustration 1 computation of customs duty on import. On the other hand there are taxes like the specific excise taxes that are set on a particular.

5Customs dutyThis is tax imposed on import or export of commodities. In this case it simply means that the excise duty. Nature or Characteristics of Excise duty Central Excise duty is a central tax imposed by Government of India.

The rates of this duty popularly known as basic customs duty are indicated in the First Schedule of the Customs Tariff Act 1975. An excise duty differs from a customs duty in that an excise duty is imposed on domestically manufactured goods whilst a customs duty is imposed on imported goods. Custom duty is to be paid by the importer of the goods.

Excises are often associated with customs duties which are levied on pre-existing goods when they cross a designated border in a specific direction. Additional Countervailing Duty This countervailing duty is leviable as additional duty on goods imported into the country and the rate structure of this duty is equal to the excise duty on like articles produced in India. Ad valorem literally means as per value.

An excise or excise tax is any duty on manufactured goods that is levied at the moment of manufacture rather than at sale. 6Stamp dutyThis is tax imposed on the transfer of property. Basic Excise Duty is levied under Section 3 of the Central Excises and Salt Act 1944.

Basic Excise Duty The basic excise taxes are levied as per the First Schedule of the Central Excise Tariff Act 1985. Excise duty is to be paid by the manufacturer of the goods and not by the consumer. The duty may be a percentage of the value of the goods or at a specific rate.

Ad-volrem duty encourages the production of low priced goods. Explain in detail the various types of excise duty that can be imposed under Central Excise Act. Additional Countervailing Duty of Customs.

Maintenance of Records 7. The rate of duty is determinable on the basis of classification of goods. Hence in the case of distribution of tax burden it satisfies the canon of equity.

National Calamity Contingent Duty It. 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. Customs and Excise is mandated to promote the security and facilitation of international trade transport and people including simplification of Customs laws and harmonisation of Customs procedures enhance compliance strengthen enforcement and to optimize revenue collection and the compilation of accurate trade statistics What we do.

4Excise dutyThis is tax imposed on commodities produced locally. Under this section all excisable products apart from salt manufactured of produced in India are subject to Basic Excise Duty. The primary function of these duties and levies is to ensure a constant stream of revenue for the State with a.

It is only applicable on the specific textile goods and falls under the Additional Duties of Excise Act 1978. Describe the functions and power of authorities relating to central excise. Administration Importance of Central Excise Duty in Respect of Revenue.

Electronic equipment and cosmetics. When is a sale or purchase of goods said to be sale or purchase. 75 Excise duty chargeable on similar goods in India as per tariff rate.

This is levied of the customs authorities feel that the exports of a particular good can damage the economy of the country. This is levied if a particular good is being imported is below the fair market price. Excise duties and levies are imposed mostly on high-volume daily consumable products eg.

For example an import or export duty is levied at the rate of 20 paisa per rupee or 2 of the value of goods. The duty may be fixed on ad -valorem basis or specific rate basis. Petroleum and alcohol and tobacco products as well as certain non-essential or luxury items eg.

The following information is furnished by X on 8th June 2015 in respect of machinery imported from USA. The Central Government has the power to reduce or exempt any good from these duties. Special excise duty.

The details of excise duty levied should be declared in monthly excise return on before 20th of the subsequent month. Basis of Taxation 4. The excise duty rates are being vary from the product to product.

Here are the different types of excise duties. 7Land rent and ratesThis is tax imposed on property. Rs1100000 Basic Customs duty.

The classification of goods is also required to be decided for the purposes of determining the eligibility to exemptions most of which are with reference to the Tariff. Different excise duty rates depend on the product imported or manufactured. 125 Additional duty of customs us 35 of CTA.

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