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What is excise duty and its types?
There are three main types of excise duty. Special excise duty (USED) is charged on all excitable goods on which there is a levy of basic excise duty (BED) and is levied at the rates specified in the second schedule of Central Excise Tariff Act, 1985.
What do you mean by excise duty?
excise duty. A percentage levied on manufacture, sale, or use of locally produced goods (such as alcoholic drinks or tobacco products). A percentage tax levied on a company's revenue, instead of (like income tax) on the company's income. Also called excise tax.
What do you mean by central excise duty?
Central Excise duty is an indirect tax levied on those goods which are manufactured in India and are meant for home consumption. The taxable event is 'manufacture' and the liability of central excise duty arises as soon as the goods are manufactured.
What is excise and custom duty?
Both excise and custom duty are taxes levied by the government, but the major difference between the two is that excise is the tax levied by the government on the goods manufactured in the country while customs duty is a tax levied upon goods imported in to the country from foreign countries.
What is the rate of excise duty?
As per central excise tariff rules, the rates of excise duty are specified. Currently, the rate of excise duty is 12.36%, and it varies according to the type of goods. Under GST, we have following rates of taxes viz., 0%, 5%, 12%, 18%, 28%. To file monthly returns and an annual return before 30th April.
What are excise duties and what is their purpose?
Excise Duty is a tax that is designed to discourage the purchase of particular goods. By making products more expensive, Excise Duty is supposed to discourage the consumption or waste of goods that are deemed to be harmful to consumers' health or damaging to the environment.
What is the meaning of excise duties?
excise duty. A percentage levied on manufacture, sale, or use of locally produced goods (such as alcoholic drinks or tobacco products). A percentage tax levied on a company's revenue, instead of (like income tax) on the company's income. Also called excise tax.
What are customs and excise duties?
Customs duties are imposed by the Customs and Excise Act 91 of 1964. They are levied on imported goods with the aim of raising revenue and protecting the local market. They are usually calculated as a percentage of the value of the goods (set in the schedules to the Customs and Excise Act).
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