Scribd
Upload
307 views10 pages

Central Exercise Duty Central Exercise Duty: Presented By: Krishna

Central excise duty is an important source of revenue for the Government of India, second only to income tax. It is a tax imposed by the central government on goods manufactured in India. The constitution grants the central government power to impose excise duties on tobacco and other goods, excluding alcoholic beverages, opium, and narcotics. Central excise duty is imposed based on the nature, production, and sale of manufactured goods. It is an indirect tax collected from manufacturers, and generates approximately Rs. 2 lac crores annually.

Uploaded by

Krishna Rajput
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
307 views10 pages

Central Exercise Duty Central Exercise Duty: Presented By: Krishna

Central excise duty is an important source of revenue for the Government of India, second only to income tax. It is a tax imposed by the central government on goods manufactured in India. The constitution grants the central government power to impose excise duties on tobacco and other goods, excluding alcoholic beverages, opium, and narcotics. Central excise duty is imposed based on the nature, production, and sale of manufactured goods. It is an indirect tax collected from manufacturers, and generates approximately Rs. 2 lac crores annually.

Uploaded by

Krishna Rajput
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 10

Central Exercise Duty

Presented by: Krishna


Introduction:
Central Excise Duty is an important source of revenue for Govt.
of India. Revenue received from Central Excise about 2 Lac
Crores Stands in second rank after Income Tax.

Meaning of Excise Duty:


In India, term “Excise Duty” has not been defined, either in the
Constitution of India or even in the Central Excise Act, 1944.
However, the Constitution of India has vested in the Seventh
Schedule, powers to levy various taxes and duties by the Union
as well as the states.
Allocation of sources between Centre and states under the
constitution of India grants to the Central Government power to
impose “Duties of excise on tobacco and other goods
manufactured or produced in India, except alcoholic liquors for
human consumption, opium, narcotics, but including medical and
toilet preparations containing alcohol, which is called “Central
Excise”.

(a) alcoholic liquors for human consumption;


(b) opium, Indian hemp and other narcotic drugs & narcotics,
but including medicinal and toilet preparations containing
alcohol or any substance included in sub-paragraph (b) above.
Nature or Characteristics of Excise duty
Central Excise duty is a central tax imposed by Government of
India. The following features of the excise duty –

 Imposition
 Nature
 Basis of Taxation
 Payment
 Scope
 Maintenance of Records
 Excise rate
 Administration
Importance of Central Excise Duty in Respect of
Revenue
Excise Duty is the most important source of income of Indian
Govt. The Govt. earns huge revenue through this. This tax is
imposed on the manufacturing of goods. It is an indirect tax and
collected from manufactures. This tax was first imposed on the
manufacturing of cotton yarn in 1894. For the proper
implementation of excise duty, Central Excise Duty Act, 1944
and central Excise Tariff Ac, 1985 are applicable which is also
known as CEAT. At present this tax is applicable on various types
of goods covered under 20 sections and 96 chapters there of and
approximately it earns Rs. 2 lac crores per year.
Merits of Excise Duty or Importance of Excise Duty
• Major source of Government revenue
• Psychological advantages to tax payer
• Easier to collect
• Balanced Industrial Growth
• Less collection cost
• Tax evasion difficult
• Control over wasteful expenditure
Disadvantages or demerits of Excise Duty

• Increase the Price of goods


• The incidence is uniform
• Reduces demand of goods
• Increases project costs
• Protect inefficient local industries
• Modern technology becomes costly
• Increases smuggling/tax evasion
Types of Excise Duties
1. Central Excise Duty a. Basic Excise Duty – Basic duty of
excise levied under Central Excise Act, Basic excise duty (also
termed as Cenvat as per section 2A of CEA) is levied at the
rates specified in first schedule to central Excise Tariff Act. The
general rate of Excise Duty is 12% and 3% education cess there
on So, at present normal excise rate is 12.36%. There is partial
exemption to a few products.
2. Provincial Excise Duty Although Excise duty is imposed by
Central Govt. Indian Constitution has given rights to state
government to impose and collect excise duty on intoxicants
like Liquor, Bhang, Ganja, Opium etc.
3. Duties under other Acts Some duties and cess are levied on
manufactures products under other Acts. The administrative
machinery of central excise is used to collect those taxes.
Provisions of Central Excise Act and Rules have been made
applicable for levy and collection of Central duties cesses.
Procedure for making Application for Registration
• Application in Form A-I
• signature on Application
• Submission of Ground Plan
• Documents to be submitted

Procedure for Issue of Registration Certificate


• Verification of Application
• Discrepancy of Verification
• Time limit for Issue of Certificate
• Recording of Applications and Grant of Certificate
• Exhibition of Certificate of Registration
Excise Control Code (ECC Number)
The Central Excise assesses and registered dealers have to
obtain new Excise Control Code (ECC) number. This number is
based on the principles of Common business Identifier and will
ultimately replace the existing registration number.

The End.

You might also like