Dear Friends
I have a query.
Why is the Central Excise duty on Molasses payable by buyer and not by the manufacture? What is the logic behind it??
regards
Menu
Excise duty - molasses
Replies (3)
Here is the logic for that, molasses is also a form of ethyl alcohol, and is effectively used for making country liquor. And in India we have the problem of illegal manufacturing of country liquor and also after consuming the country liquor many a time people lose their life, so this is a double edged sword for the government, so the government wanted put a check on that.
So the rule was made in such a manner to prevent mill molasses being used in illegal distilleries which evade very high duty on rum alcoholic drinks and also which operates illegally and are prejudicial to the public interest.
hi
Thanks for replying! But i still have difficulty in understanding the logic.
I hope someone would explain the same in a layman's language.
Regards
Hii Rohan,its nothing frnd.As the country liquor is harmful and many of them had losen their lives and in order to be in the safe side the people who purchase it should only pay the tax instead the company paying it.
Hope now you got it.......
Recent Topics :
- GST Input Tax Credit (ITC) on Camera Purchase &
- What makes CA Himanshu Singla different from other
- TAX TREATMENT AND ACCOUNTING ENTRIEOF PERQUISITES
- Gifting money to my father-in-law (my husband's da
- GSTR-1 JSON from marketplace exports (Myntra / Ama
- Question on buy back of shares
- Saving corporate tax completely on profit from rea
- Hi experts need some helps
- A query regarding GST and Place of Supply:
- ADT-3 not filed by previous Auditor
Related Topics :
CAclubindia
