Excise Duty Rate in India

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CENTRAL EXCISE DUTY

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CONTENTS

• Introduction
• Law of central excise duties
• Liability of Goods
• Excise Duty Rate in India
• Products with Excise Duty Charges
• Excisable Goods

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CENTRAL EXCISE DUTY INTRODUCTION

• Excise duty is a type of indirect tax levied on
  production or manufacture of excisable goods in
  India. 
• The Excise Duty is collected by Central Board of
  Excise and Customs (CBEC).
• In Union Budget of India 2016, an excise duty of
  1 without input tax credit and 12.5 with input
  tax credit has been imposed on the articles of
  jewellery except silver jewellery.
• Excise Duty on alcoholic preparations, alcohol,
  and narcotic substances is collected by the State
  Govt and is called State Excise Duty.
• The Excise Duty on rest of goods is called
  Central Excise Duty and is collected in terms
  of Section 3 of the CEA (Central Excise Act),
  1944.

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LAW OF CENTRAL EXCISE DUTIES

• Central Excise Act This is the basic law related
  to the levy and collection of duties of central
  excise. However, this Act does not contain the
  Central Excise rate at which duties are imposed.
• Central Excise Tariff Act This Act classifies
  various goods on which central excise duties are
  levied and prescribes the Excise rates at which
  the duty is payable.
• Central Excise Rules, 1944 All manufacturers of
  excisable goods are required to register under
  these rules. The excise registration is valid as
  long as production activity continues and no
  renewals are necessary.

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LIABILITY OF GOODS

• Excise Duty is levied if the following conditions
  are satisfied.
• There must be goods.
• Goods must be excisable (means the goods must be
  specified in CETA (central excise tariff act)).
• Goods must be man
• Goods must be manufactured or produced.
• Such manufacture or production must be in India
  (excluding special economic zone).

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EXCISE DUTY RATE IN INDIA

• CENVAT (Central Value Added Tax ) is a tax levied
  on the production or manufacture of movable and
  marketable goods in India.
• The CENVAT tax is levied on a percent basis,
  either maximum retail price of the goods or the
  expressed as a percentage of the transaction
  value.
• The excise duty rate at which is applied to these
  goods depends on the classification of the goods
  (Products) under the Excise Tariff.

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CENTRAL EXCISE DUTY RATE

• Current Excise Duty Rate in India The Present
  Excise Duty Rate in India is 12.50 with effect
  from 1st March 2015 12.00am. The CENVAT Rate is
  Rounded off to 12.5 from 12.36 including all
  taxes.
• Change in Central Excise Duty Rate The Basic
  Excise duty rate has been changed from 12 to
  12.50 . The Central Excise duty in India to be
  rounded off to 12.5 from 12.36 as per Union
  Budget 2016-2017
• As per Budget 2015, basic Excise Duty rate has
  been changed from 12 to 12.5. However,
  Education Cess and Secondary Higher Education
  Cess has been removed.

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PRODUCTS WITH EXCISE DUTY CHARGES

• Besides alcohol and narcotics, collected by the
  corresponding state and Central Government
  charges excise duty on the following products.
• Vegetable Products
• Animal Products and Live Animals
• Other Products
• Products Made Out of Nonrenewable Sources

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LIABILITY TO PAY EXCISE DUTY

• Taxable Event Manufacture or production in India
  is a taxable event.
• Liable to pay duty Every person who produces or
  manufactures any excisable goods or who stores
  such goods in a warehouse shall pay excise duty.
• Liable to Excise Duty (Section 3(1) provides
  that there shall be levy collected in such
  manner as may be prescribed).
• A duty of excise to be called the Central Value
  Added Tax (CENVAT) on all excisable goods
  produced or manufactured in India.
• Special Duty of Excise in addition to Excise Duty
  can be levied as per the second schedule to
  central excise tariff act, 1985.

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EXCISABLE GOODS

• Excisable Goods It means which are specified in
  the first schedule and second schedule of central
  excise tariff act 1985.
• Exempted Goods Those goods which are exempted by
  way of notification by the central government.
• Non-excisable goods Not specified in 1st and 2nd
  schedule of central excise tariff act 1985
  therefore, no excise duty is leviable.

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GOODS MANUFACTURED IN INDIA

• Excisable Two types of Excisable goods are as
  follows.
• Dutiable
• Marketable Marketable Goods are of two types
  Movable and Non-movable. Movable goods are Excise
  Duty payable whereas for Non-movable goods Excise
  duty is not payable.
• Non-marketable There is no Excise Duty for
  Non-marketable goods.
• Non-dutiable These are exempted from Excise
  Duty.
• Non-excisable There is no Excise Duty for
  Non-excisable goods.

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