What is excise duty rate in India?
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 excise duty applicable on manufacture?
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.
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 limit for excise duty?
Registration Details Once the turnover limit exceeds, the unit should be registered with Central Excise Authorities. SSI whose turnover is more than the specified limit (at present Rs. 90 Lakhs), but less than exemption limit (i.e. Rs. 150 lakhs) have to file a declaration in a prescribed form.
What are the basic conditions for excise duty?
Basic conditions for levy of excise duty: (a) There must be goods. (b) Such goods must be excisable. (c) Such goods must result out of production or manufacture. (d) Such production or manufacture must take place in India (other than special economic zones).
Is it mandatory to pay duty on all goods manufacturers?
Yes, it is mandatory to pay duty on all goods manufactured, unless exempted. For example, duty is not payable on the goods exported out of India.
Does excise duty exist after GST?
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.
Who will pay excise taxes?
Excise taxes are primarily for businesses. Consumers may or may not see the cost of excise taxes directly. Many excise taxes are paid by merchants who then pass the tax on to consumers through higher prices.
What is the rate of excise duty on ready made clothes?
Excise duty at the rate of 10% shall now apply to ready-made garments and made-up articles of textiles falling under Chapters 61, 62 and 63 of the Central Excise Tariff when they bear or are sold under a brand name. The duty shall be applicable from 01.03.2011.
Which articles are exempted from the applicability of excise duty?
The Articles not bearing a brand name are exempted from the applicability of excise duty. The exemption is based on the condition that no CENVAT credit shall be taken. Thus readymade garments, not bearing a brand name are exempted from payment of Central Excise duty.
What is the meaning of excise duty?
Excise Duty is a tax attracted by the event of manufacture but collected at some convenient stage which may be after the said event, which is only for administrative convenience. It is a duty levied up on goods manufactured and not up on sales or the proceeds of sale of goods.
Who is liable to pay duty on goods manufactured on job work?
(ii) The brand name owner, who gets the goods manufactured on his own account on job work, shall pay the duty leviable on such goods as if the goods were manufactured by him. The brand name owner (and not the job-worker) shall be required to register and comply with all the provisions of Central Excise law.