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when excise levy?

Thumar Shital (PCC Student) (241 Points)

02 February 2011

When excise levy on manufacturing unit?

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4 Replies

Amit Prakash Singh (Accountant) (295 Points)
Replied 12 February 2011

In this mattaer u have to understant The basic condition for levy of Duty U/s 3 of the Central Excise Act 1944 that :

1) The Duty is on the Goods

2) The goods must be exciseable(included in CETA)

3) Goods must be produced or manufactured

3) Such manufacture/production must be in india

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 12 February 2011

An excise or excise tax (sometimes called a duty of excise or a special tax) is commonly understood to refer to an inland tax on the sale, or production for sale, of specificgoods; or, more narrowly, as a tax on a good produced for sale, or sold, within a country. An excise tax is one levied on specific goods or commodities produced or sold within a country, or on licenses granted for specific activities. Excises are distinguished from customs duties, which are taxes on importation. Excises are inland taxes, whereas customs duties are border taxes.

An excise is considered an indirect tax, meaning that the producer or seller who pays the tax to the government is expected to try to recover the tax by raising the price paid by the buyer (that is, to shift or pass on the tax). Excises are typically imposed in addition to another indirect tax such as a sales tax or VAT. In common terminology (but not necessarily in law) an excise is distinguished from a sales tax or VAT in three ways: (i) an excise typically applies to a narrower range of products; (ii) an excise is typically heavier, accounting for higher fractions (sometimes half or more) of the retail prices of the targeted products; and (iii) an excise is typically specific (so much per unit of measure; e.g. so many cents per gallon), whereas a sales tax or VAT is ad valorem, i.e. proportional to value (a percentage of the price in the case of a sales tax, or of value added in the case of a VAT).

Typical examples of excise duties are taxes on gasoline and other fuels, and taxes on tobacco and alcohol (sometimes referred to as sin tax)

Yogesh (Excise-officer) (29 Points)
Replied 04 March 2011

Dear Sir,

3 M Factor is required for Excise Duty

1) Marketable

2) Movabale (Not attached to earth)

3) M/f in India

Regards

Yogesh

Soumyen Sarkar (free) (102 Points)
Replied 04 March 2011

Excise duty is payable only when the ownership of the manufactured goods are changing from manufacturer to buyer. Precisely, excise duty is payable at the time of clearance from the factory or from a place of the manufacturer where they are permitted by the excise department to store their non-duty paid finished goods.