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. 25 apr. 2021
- Excise Duty in India Excise duty is a form of indirect tax that is levied by the Central Government of India for the production, sale, or license of certain goods. Excise duty charges are also collected by state governments for alcohol and narcotics. Note: Excise duty has been replaced by the Goods and Services Tax (GST) w.e.f. 1 July 2017.
- 1 What is difference between excise duty and GST?
- 2 What is excise duty and its types?
- 3 What is excise duty how it is calculated?
- 4 What is the difference between VAT and excise duty?
- 5 Does GST replace excise duty?
- 6 Is excise duty a tax?
- 7 What are the features of excise duty?
- 8 What are the objectives of excise duty?
- 9 How is alcohol excise duty calculated?
- 10 What is fuel excise duty?
- 11 What is the rate of excise duty?
- 12 Is VAT calculated on excise duty?
- 13 Is VAT better than GST?
- 14 Is VAT applicable in India?
- 15 Is GST VAT based?
What is difference between excise duty and GST?
Currently Excise duty is levied on only manufacture. While GST will be levied from manufacture till the sale of goods to the customer. GST will levied on goods and services also. Today excise is levied on goods and VAT is levied on value of goods plus Excise, which leads to double taxation.
What is excise duty and its types?
An excise or excise tax (sometimes called an excise duty) is a type of tax charged on goods produced within the country (as opposed to customs duties, charged on goods from outside the country). It is a tax on the production or sale of a good. This tax is now known as the Central Value Added Tax (CENVAT).
What is excise duty how it is calculated?
The sales price of an item is INR 23,000. The assessable value for excise is INR 20,000. 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.
What is the difference between VAT and excise duty?
VAT is the tax added on goods as it moves from the initial stage of manufacturing to the point of sale while excise duty is the tax added on the manufacturing of goods. VAT is paid by the consumers who buy the product whereas excise duty is paid by the company who is making the product.
Does GST replace excise duty?
3- Has GST subsumed excise duty? Yes, excise duty has been subsumed by the Goods and Service Tax (GST) along with other indirect taxes. However, excise duty is still levied on certain items like petroleum and liquor.
Is excise duty a tax?
Excise duty is a form of tax imposed on goods for their production, licensing and sale. 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.
What are the features of excise duty?
The following features of the excise duty:
- Basis of Taxation.
- Maintenance of Records.
- Excise rate.
What are the objectives of excise duty?
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. Typically, Excise Duty covers alcohol, tobacco, and some energy products.
How is alcohol excise duty calculated?
Duty is charged to the alcohol content.
This is calculated by multiplying the bulk litres by the abv of the product. The excise duty is then obtained by multiplying this amount by the spirit duty rate.
What is fuel excise duty?
Excise duty was raised by ₹13 and ₹16 per litre on petrol and diesel between March 2020 and May 2020, and now stands at ₹31.8 on diesel and ₹32.9 per litre on petrol. The increase in excise duty was to mop up gains arising from international crude oil prices falling to a two-decade low.
What is the rate of excise duty?
Tax rate: The rates applicable to excise duty are specified as per the central excise tariff rules. At the moment, excise duty is charged at 12.36% but it varies based on the kind of products. GST, on the other hand, has standard rates at 0%, 5%, 12%, 18%, and 28% depending upon the kind of product.
Is VAT calculated on excise duty?
Excise duty & Vat ia availed on the basic of amount charged in Invoices. I.e what we have paid against these invoices. We need not require to calculated vat on gross amount exclduing excise. 19 March 2008 VAT & Excise Credit has to be taken as per Invoice and hence VAT inclusibve excise duty.
Is VAT better than GST?
Cost Reduction. The introduction of GST law will ultimately result in cost reduction of goods as there will be a single tax levied that is goods and service tax. While under VAT law a trader cannot utilize credit of other indirect taxes like service tax credit etc.
Is VAT applicable in India?
Value Added Tax (VAT) is an indirect value added tax which was introduced into Indian taxation system on April 1, 2005. On June 2, 2014, VAT was implemented in all states and union territories of India, except Andaman and Nicobar Islands and Lakshadweep Islands. 5 дней назад
Is GST VAT based?
And Value Added Tax (VAT) is a tax on this value addition at each stage. The Act which came into effect on 1 st July 2017 is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. Under GST, the tax is levied at every point of sale.