Excise Duty is a Tax Levied on the

  1. import of goods
  2. Production of goods
  3. export of goods
  4. sale of goods
Monis Rasool Professor Asked on 12th June 2015 in Economics.
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    Production of Goods

    Excise duty charge is applicable on those products which is been produced in India. There are three different type of central excise duties which exist in India.
    Basic– Excise duty, imposed under section 3 of the ‘Central Excise and salt Act’ of 1944 on all excisable goods other than salt produced or manufactured in India.
    Special- As per the section 37 of the Finance Act, 1978 Special excise Duty was attracted on all escisable goods on which there is a leavy of Basic excise Duty the Central Excise and Salt Act, 1944. Therefore, each year the Finance Act spells out that whether the Special Excise Duty shall or shall not be charged not be charged, and eventually collected during the relevant financial year.
    Additional- Section 3 of the ‘Additional Duties of Excise Act’ of 1957 permits the charge and collection of excise duty in respect of the goods as listed in the schedule of this act. This tax is shared between the central and state government and charged instead of sales tax.

    Monis Rasool Professor Answered on 13th June 2015.
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