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Excise Duty

nagaraj (student) (206 Points)

27 November 2007

What is Excise Duty?

To Whom it's Applicable?

How it's Calculated

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17 Replies

(Guest)

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

Shaily Jain (Chartered Accountants) (1054 Points)
Replied 29 November 2007

Hi Nagraj n more than deepak has told u will read in CA final.

(Guest)

Thank U Deepak, When it is Levied?

astha (CA, CS) (85 Points)
Replied 12 December 2007

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%.

(Guest)

what is excise duty

Pritam (CA) (95 Points)
Replied 14 December 2007

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.

(Guest)

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Ramesh Kothari (Manager-EOU commercial) (161 Points)
Replied 21 December 2007

The excise duty is a levy on good manufctured and remove fm the unit as sales to any person/unit for further processing or trade Regds RameshKothari

(Guest)

hi. i m getting more more information

(Guest)

Mr. Pritam CA Can i hv your contact no. I am excise and service tax consultant at PUNE My No 9317209751

hamid (Manager Finance/Commerce) (74 Points)
Replied 30 December 2007

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-payer’s 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.