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Excise duty

Shyam Kanabar (Article) (160 Points)

14 December 2011

Concept of Excise duty? AND Excise duty are paid at each and every stage or not? AND Upto What extent set off of Excise duty are available,Explian with channel of intermediaries i.e..manufacture-whole seller-retailers...

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3 Replies

HS Negi (Senior Executive- F&A) (590 Points)
Replied 15 December 2011

Dear Sir,

Please refer to Central Excise Act, 1944 & visit to website www.cbec.gov.in

Regards

HS Negi

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CA Prabhat Gupta (Manager (Indirect Taxes)) (821 Points)
Replied 15 December 2011

Mr. Shyam,

Your query needs a detailed explanation but I am giving an overview of what you asked:

Excise duty is an Indirect Tax that has to be discharged by a manufacturer of Excisable goods. Duty is levied only if the process undertaken on inputs amounts to manufacture or is deemed to be manufacture. Duty is levied at the time of manufacture but its payment is postponed till actual removal.

Where final Product manufactured by a manufacturer is dutiable, there is no requirement ot pay duty on intermediate goods. But where final products are not dutiable or are exempt, duty is to be paid on intermediate goods captively consumed.

CENVAT Credit of duties paid on inputs, capital goods and input services is allowed as per CENVAT Credit Rules, 2004 as amended.

Manufacturers, First Stage Dealers, Second Stage Dealers & Warehouse keepers of excisable goods are required to take registration with Central Excise Department.

For more details you me refer Governments official website www.cbec.gov.in as suggested by Mr. Negi.