What is meant by excise duty?

What is meant by excise duty?

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.

What are the types of excise?

Types of Excise Duty

• 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 is basis of 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 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:

• Imposition.
• Nature.
• Basis of Taxation.
• Payment.
• Scope.
• Maintenance of Records.
• Excise rate.
• Administration.

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. National Calamity Contingent Duty (NCCD):- It is levied on items like cigarettes, bidi, pan masala or other tobacco products.

Is excise duty a direct tax?

What is scope of excise duty?

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 advantages of excise duty?

The advantages include: • They have significant revenue potential. The revenue is relatively easy to collect. They can be used to generate behaviour change for wider social and environmental objectives, e.g. concerning public health.

What is SGST and IGST?

The GST to be levied by the Centre on intra state supply of goods and / or services is Central GST (CGST) and that by the States is State GST (SGST). On supply of goods and services outside the state, Integrated GST (IGST) will be collected by Centre. IGST also applies on imports as well. Transaction.

What is full from SAC?

SAC stands for Servicing Accounting Code and is used to classify services instead of goods.

How do I calculate GST percentage?

For example, if a product or service costs Rs. 100 and the GST levied on that is 18%, the GST amount will be 100 x 18% = Rs. 18.

What are 3 types of GST?

Currently, the types of GST in India are CGST, SGST, and IGST. This simple division helps distinguish between inter-state and intra-state supplies and mitigates indirect taxes. To learn more, read about these three different types of GST.