Excise duty

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Chandrashekhar Kulkarni (Querist)
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12 July 2013 Dear Sir,
1)please tell me why excise duty is to be paid by Manufacturer?

2) Why excise is indirect tax?

Chandrashekhar S Kulkarni
+919730621426

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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13 July 2013 Central Excise duty is an indirect tax levied on those goods which are manufactured in India and are meant for home consumption. The taxable event is 'manufacture' and the liability of central excise duty arises as soon as the goods are manufactured. It is a tax on manufacturing, which is paid by a manufacturer, who passes its incidence on to the customers.

The term "excisable goods" means the goods which are specified in the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 , as being subject to a duty of excise and includes salt.

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