Excise Duty is a Duty Levy on Production but Payable on removal of Goods from Factory, Warehouse, Depo etc.
Calculated @ 16.48% on Net Present Value (i.e. Sales Consideration), if goods not exempted by any Notification
Applicable on Manufacturer
Hi nagaraj,
Excise duty is a duty on manufacture/production of goods. Goods should be movable & marketable for the purpose of levy of duty.
Excise duty is paid when the goods are removed from the factory by the manufacturer. Goods can also be kept in warehouse without payment of duty. In that case duty shall be paid by warehouse keeper whn the goods will be removed from warehouse.
Excise duty is paid on Assessable Value. For determination of AV there are certain Valuation Rules.
The rates of excise duty is prescribed in the Schedules to the Act. A general rate of 16% is prescribed plus education cess of 2% and secondary and higher education cess of 1%.
Every tax is levied on a event famously called Taxable event. For e.g. in sales tax taxable event is sale of goods. Under excise the taxable event is Manufacture of Goods.
So excise is duty on manufacuring/production of goods.
Most common rate is 16%. Over this add Eduction Cess 3%.
Duty is payable by manufacturer.
Excise duties are levied by the Central Government on commodities manufactured or produced within the country and intended for consumption within the country
Central Excise Duty is an indirect tax. This type of tax is related to the ultimate tax-payerโs ability to pay. Each person ,rich or poor, is liable to pay tax indirectly on purchases of goods which have already been charged to duty.
The year 1934 stands out as a landmark in the development of Central Excise in India.