Quick Answer: What’S The Meaning 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.More items….

What is excise duty and when it is applicable?

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. … There is no requirement for the actual sale of the goods for imposing the excise duty because it is imposed on the manufacture of such goods.

What is VAT excise duty?

VAT means Value Added Tax. VAT is meant for State government and Central Excise Tax is levied by central government. Central excise Tax is levied up on manufacture of excisable goods in India. But VAT is charges at the time sale of goods within the state.

How do I calculate excise duty?

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 are the objectives of excise duty?

(iii) Prevention of illicit distillation and clandestine trade in non-duty paid Liquor through Excise Intelligence and Enforcement measures. The State is the exclusive privilege holder and it can grant the exclusive privilege for manufacture, possession and sale of intoxicating liquor.