What Is Central Excise Duty And Its Features

It is administered by central board of excise and custom cbec which is part of ministry of finance government of india.

What is central excise duty and its features. This category of excise duty was levied on goods that were classified under the first schedule of the central excise tariff act 1985. A fixed tax levied on an activity or occupation such as the license fee charged from attorneys doctors and other professionals. This duty is imposed under section 3 1 a of the central excise act 1944 and levied on all excisable goods in the country except salt. An excise typically applies to a narrow range of products and.

An excise tax is a legislated tax on specific goods or services at purchase such as fuel tobacco and alcohol. It calculates assessment values central excise duties and different set offs for both ecc registered manufacturers and ecc registered traders. As per central excise tariff rules the rates of excise duty are specified. Under gst we have following rates of taxes viz 0 5 12 18 28.

Currently the rate of excise duty is 12 36 and it varies according to the type of goods. Typical examples of excise duties are taxes on gasoline and other fuels and taxes on tobacco and alcohol sometimes referred to as sin tax. An excise is typically heavier accounting for a higher fraction of the retail price of the targeted products. It has a clear framework for classification of goods.

Also called excise tax. Here s a list of features the central excise tax comprises of. Basic excise duty sometimes referred to as central value added tax cenvat this type of excise duty is imposed on goods classified under the first schedule of the central excise tariff act 1985. An excise duty is a type of indirect tax that is levied on the sales of particular goods.

Basic excise duty is also known as the central value added tax cenvat. The excise tax is the indirect tax that is charged as per the excise duty act 1944. The following features of the excise duty. This duty was levied under section 3 1 a of the central excise act 1944.

This tax is not paid directly by the customer but is passed on to the consumer by a merchant or producer of goods as a part of the price of the product. As per act central excise duty is leviable on every item manufactured except salt and consumed in india. Imposition nature basis of taxation payment scope maintenance of records excise rate administration. Excise taxes are intranational taxes imposed within a government infrastructure.