Is excise duty applicable in India?
Excise duty refers to the taxes levied on the manufacture of goods within the country, as opposed to custom duty that is levied on goods coming from outside the country. This means excise duty, technically, does not exist in India except on a few items such as liquor and petroleum. …
What is basic excise duty?
Basic – Excise Duty, imposed under section 3 of the ‘Central Excises and Salt Act’ of 1944 on all excisable goods other than salt produced or manufactured in India, at the rates set forth in the schedule to the Central Excise tariff Act, 1985, falls under the category of basic excise duty in India.
Who is liable for excise tax?
The general rule is that the producer of a product is the one liable for the excise tax. However, if the tax is unpaid and possession is transferred to the buyer, the buyer/possessor of the product can be made liable for the excise tax.
What is the difference between Customs Duty and excise duty?
Excise duty is a UK tax due on all alcohol imported into the UK (or for what is referred to a ‘released for consumption’) regardless of where it is from, whereas Customs Duty is a European tax on alcohol imported from outside the European Union.
What are the two types of excise tax?
Specific Tax – refers to the excise tax imposed which is based on weight or volume capacity or any other physical unit of measurement. Ad Valorem Tax – refers to the excise tax which is based on selling price or other specified value of the goods/articles.
How many types of excise duty are there?
Before GST kicked in, there were three kinds of excise duties in India. Basic excise duty is also known as the Central Value Added Tax (CENVAT). This category of excise duty was levied on goods that were classified under the first schedule of the Central Excise Tariff Act, 1985.
What is state excise duty?
Excise duty on production of few items including that on liquor is imposed by state governments. Excise duty on alcohol, alcoholic preparations, and narcotic substances is collected by the State Government and is called “State Excise” duty.
Is there VAT in India?
VAT was introduced value added tax (VAT) into the Indian taxation system from 1 April 2005. … As of 2 June 2014, VAT has been implemented in all the states and union territories of India except Pondicherry, Andaman and Nicobar Islands and Lakshadweep Island.
How is alcohol excise duty calculated?
The amount of tax is mostly determined by how much alcohol is in the product which is being sold. Alcohol excise tax represents around 14% to 37% of the price paid for wine and beer, and 50% of the price of spirits.
Is customs duty a tax?
Definition: Customs Duty is a tax imposed on imports and exports of goods. … While revenue is a paramount consideration, Customs duties may also be levied to protect the domestic industry from foreign competition.
What is toilet preparation?
“toilet preparation” means any preparation which is intended for use in the toilet of the human body or in perfuming apparel of any description, or any substance intended to cleanse, improve or alter the complexion, skin, hair or teeth, and includes deodorants and perfumes.