Basic knowledge of excise & customs

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Querist : Anonymous

Querist : Anonymous (Querist)

20 December 2013 Good Morning all tomorrow is my Interview in seeds manufacturing plant so i want a gain knowledge of Basic Excise & Customs duty like what is the maintain accounts of Excise & customs duty & which date written filling & which register is maintain & excise & customs calculation & entry etc.
Please help me this is most important for my Interview.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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20 December 2013 The Constitution of India (COI) has given power to levy tax to central and State Government under seventh schedule. The taxation in India is either charged by the State Governments or by the Central Government. In the basic scheme of taxation in India, it is conceived that Central Government will levy and collect tax revenue from Income Tax (exception Agricultural Income), Excise (except on alcoholic drinks, Etc.) and Customs while State Government will get tax revenue from Local Sales Tax, Excise on liquor and tax on Agricultural Income and the Municipalities will get tax revenue from Octroi and Property Tax.

Taxes are of two type?s viz. Direct Taxes and Indirect Taxes.

Direct Tax is the tax, which is paid directly by people to the government, while indirect tax is paid indirectly by people to the government through registered government representatives.

excise duty is paid by people to the manufacturer who pays it to the government, therefore it is an indirect tax.

Administration of Central Excise is under CBE&C (Central Board of Excise and Customs). The hierarchy is – Chief Commissioner, Commissioner, Additional Commissioner, Joint Commissioner, Deputy Commissioner, Assistant Commissioner, Superintendent and Inspector.

Every person who produces or manufactures excisable goods, is required to get registered, unless exempted. [Rule 9 of Central Excise Rules]. If there is any change in information supplied in Form A-1, the same should be supplied in Form A-1.

daily stock register
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Manufacturer is required to maintain Daily Stock Account (DSA) of goods manufactured, cleared and in stock. [Rule 10 of Central Excise Rules

Goods must be cleared under Invoice of assessee. In case of cigarettes, invoice should be countersigned by Excise officer. [Rule 11 of Central Excise Rules]

excise duty
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Duty is payable on monthly basis through GAR-7 challan / Cenvat credit by 5th/6th of following month, except in March. SSI units have to pay duty on quarterly basis by 5th/6th of month following the quarter. Assessee paying duty through PLA more than Rs 10 lakhs per annum is required to make e-payment only [Rule 8].

Returns of production, clearances and payment of excise duty
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Monthly return in form ER-1 should be filed by 10th of following month. SSI units have to file quarterly return in form ER-3. [Rule 12 of Central Excise Rules] – - EOU/STP units to file monthly return in form ER-2 – see rule 17(3) of CE Rules . Assessees paying 1%/2% excise duty are required to file ER-8 quarterly return.E-return is mandatory to all assessees.

Submit Annual Installed Capacity Statement in form ER-7 every year before 30th April.

must read:

http://www.indiataxes.com/Information/Excise/Introduction_of_Taxation_system/introduction_of_taxation_system.htm

http://www.dateyvs.com/tax/central-excise/procedures-in-central-excise-and-returns-to-be-filed/

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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20 December 2013 regarding custom duty
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s imposed under the Indian Customs Act formulated in 1962 by the Constitution of India under the Article 265, which states that “no tax shall be levied or collected except by authority of law. So, the Indian Custom Act was introduced that allow the Central Government to collect the taxes under the name of Custom Duty.

Custom Duties are usually levied with ad valorem rates and their base is determined by the domestic value 'the imported goods calculated at the official exchange rate. Similarly, export duties are imposed on export values expressed in domestic currency.

Export duties are levied occasionally to clear up excess profitability in international price of goods in respect of which domestic prices may be low at given time. But the concept of import duty is wide and almost universal, except for a few goods like food grains, fertilizer, life saving drugs and equipment etc.

The Indian Customs Duties are major source of revenue for the Union Government and constitute around 30% of its tax revenues. Together with Central Excise duties, the contribution amount to nearly three-fourth of total tax revenue of the Union Government.

Custom duty not only raises money for the Central Government but also helps the government to prevent the illegal imports and illegal exports of goods from India. The Central government has emergency powers to increase import or export duties whenever necessary after a notification in the session of Parliament.

History of Indian Customs
The Custom Duty in its present form dates back to 1786, when Bruisers formed the first Revenue Board in Calcutta. In 1808, a new Trade Board was introduced for export and import of goods from India. Once again, in 1859 Customs Duties Act was introduced in which provincial import duties were replaced by uniform Tariff Act and was applicable to all Indian territories within the country.

In the subsequent year several changes in the Custom Policy took places and are as follow:

Sea Customs Act was passed by Government in 1878.
Indian Tariff Act was passed in 1894.
Air Customs having been covered under the India Aircrafts Act of 1911,
Land Customs Act was passed in 1924.
After Independence, the Sea Customs Act and other allied enactments were repealed by a consolidating and amending legislation entitled the Customs Act, 1962 (CA). Similarly the Act of 1934 was repealed by the Customs Tariff Act, 1975(CTA).

Governing Body
As per Section12 of the India Customs Act, Custom Duty is imposed on Goods, belonging to Government as well as goods not belonging to Government. Section 2(22), gives inclusive definition of ‘goods' as - 'Goods' includes:

Goods
As per Section12 of the India Customs Act, Custom Duty is imposed on Goods, belonging to Government as well as goods not belonging to Government. Section 2(22), gives inclusive definition of ‘goods' as - 'Goods' includes:

Vessels, aircrafts and vehicles
Stores
Baggage
Currency and negotiable instruments and
Any other kind of movable property.
Objectives of Custom Duties
The customs duty is levied, primarily, for the following purpose:

Restricting Imports for conserving foreign exchange.
Protecting Indian Industry from undue competition.
Prohibiting imports and exports of goods for achieving the policy objectives of the Government.
Regulating export.
Co-coordinating legal provisions with other laws dealing with foreign exchange such as Foreign Trade Act, Foreign Exchange Regulation Act, Conservation of Foreign Exchange and Prevention of Smuggling Act, etc.
Mode of Levy of Customs Duty
Basically there are three modes of imposing Customs Duty:

Specific Duties: - Specific custom duty is a duty imposed on each and every unit of a commodity imported or exported. For example, Rs.5 on each meter of cloth imported or Rs.500 on each T.V. set imported. In this case, the value of commodity is not taken into consideration.
Advalorem Duties: Advalorem custom duty is a duty imposed on the total value of a commodity imported or exported. For example, 5% of F.O.B. value of cloth imported or 10% of C.LF. value of T.V. sets imported. In case of Advalorem custom duty, the physical units of commodity are not taken into consideration.
Compound Duties: - Compound custom duty is the combination of specific and advalorem custom duties. In this case, the quantities as well as the value of the commodity are taken into consideration while computing tariff. For example, 5% of F.O.B. value plus, 50 paisa per meter of cloth imported.

must read:

http://delhicustoms.gov.in/

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