What are the different types of excise duty?

What are the different types of excise duty?

Here are the different types of excise duties:

  • Basic Excise Duty: Basic Excise Duty is levied under Section 3 of the Central Excises and Salt Act, 1944.
  • Special Excise Duty: Central Excise Duty is charged under Section 37 of the Finance Act, 1978.
  • Education Cess on Excise Duty: According to Section 93 of Finance (No.

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.

What are the two aims of excise duties?

The excise duties structure therefore aims to internalise the external costs of alcohol abuse, by adjusting alcoholic beverages prices, and to re-assign these costs to the relevant alcohol producers and consumers.

What are some examples of excise?

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

What is the difference between customs duty and excise duty?

Main difference between custom duty and excise duty can be defined as below: The duty which is levied on the goods which are manufactured in the country is called excise duty whereas the duty which is levied on the goods which are imported from a foreign country is called as custom duty.

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.

What is excise tax and example?

Excise taxes are internal taxes that are levied on the sale of specific goods and services, such as alcohol, fuel and tobacco. For example, the excise tax on a vehicle is a percentage of the total cost while the excise tax on a tobacco and gasoline is a fixed amount.

What is difference between excise duty and custom duty?

While excise duty is levied on goods produced or manufactured within the country, custom duty applies to the goods that are sold in India but were produced in a different country. Excise duty is to be paid by the manufacturer of the goods and not by the consumer. Custom duty is to be paid by the importer of the goods.

What is general excise tax?

What is the general excise tax (GET)? The GET is a privilege tax imposed on business activity in the State of Hawaii. The tax is imposed on the gross income received by the person engaging in the business activity. Your “gross income” is the total of all your business income before you deduct your business expenses.

On which products excise duty is applicable?

However, the Goods and Services Tax (GST), introduction in July 2017, subsumed many types of excise duty. Today, excise duty applies only on petroleum and liquor. Excise duty was levied on manufactured goods and levied at the time of removal of goods, while GST is levied on the supply of goods and services.

How is excise duty calculated?

Basic Excise Duty (BED) is 16% on Assessable value for excise. Additional Excise Duty (AED) is 4% calculated on assessable value for excise and BED. Special Excise Duty (SED) is 4% calculated on assessable value for excise and BED. Cess on BED, AED, SED is 2%.

What’s the difference between customs and Excise Duty?

Superficially, 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…

Are there different types of excise duty in India?

In India, the tax structure encompasses different types of taxes and duties like excise duty. To streamline the process of paying taxes and claiming returns, it is essential for individuals whose income comes under a taxable bracket to become familiar with the different types of taxes and duties.

What kind of excise duty is there in GST?

With the introduction of GST, several indirect taxes have been subsumed, including excise tax. Nonetheless, it is still applicable to a few items like petroleum, liquor, etc. This type of excise duty is levied on goods that come under the schedule one of the Central Excise Tariff Act, 1985. It is imposed on all excisable goods except salt.

How is excise duty levied on a product?

Fundamentally, excise duty is a tax levied on the domestically produced goods. Generally, it is charged on their production and sale and is also known as CENVAT or Central Value Added Tax. Excise duty is an indirect form of taxation and is collected from a customer by a retailer or an intermediary.