10 August 2015
Mr. Anand, Excise tax is a kind of tax that is levied on production and sales of goods produced within the country. The tax is known in the name of central value added tax (CENVAT).
3 types of central excise duty
Basic – Excise duty is imposed on all the goods except salt that comes under Section 3 of the Central Excise and Salt Act of 1944. This tax falls under the Central Excise Tariff Act.
Additional – Listed goods attract excise duty under Section 3 of Additional Duties of Excise Act 1957. This tax is distributed between centre and states.
Special – Certain selected goods are covered under this kind of excise duty. The goods which attract special excise duty are already mentioned in the Finance Act.
National Calamity Contingent Duty: It is also referred to as NCCD and is applied as per the Section 136 of the Finance Act, 2001. It is taken as an additional tax on certain specified goods.
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