Excise Vs sales tax

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This query is : Resolved

CA Aditya Goel (Querist)

08 April 2009 what is the difference between excise duty and sales tax? please elaborate. how we pay excise duty and when we pay and to whom we pay.

Bhupesh Panchal

Bhupesh Panchal (Expert)

14 May 2009 Following are the conditions for levying the excise duty:-
• There must be goods.
• The goods must be excisable goods.
• The goods must have been produced or manufactured.
• Such production or manufacture must be manufactured in India.

Central Excise Act, 1944 and Central Excise Tariff Act, 1985 regulates the excise duty

The taxable event for the purpose of Central Excise is manufacture or production of excisable goods but a person shall be liable to pay excise duty at the rate prevalent at the time of clearance of excisable goods from the factory/warehouse and not at the rate prevalent at the time of manufacture.

CH.LN.Sastry,MCom, LLB, M.Phil

CH.LN.Sastry,MCom, LLB, M.Phil (Expert)

12 September 2009 There must be goods. The goods must be excisable goods.The goods must have been produced or manufactured. Such production or manufacture must be manufactured in India. Central Excise Act, 1944 and Central Excise Tariff Act, 1985 regulates the excise duty.

Sales Tax levied on the sale transaction including the value of excise.

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