What Is The Difference Between Custom Duty And Excise Duty?

What are the different types of excise duty?

Here are the different types of excise duties:Basic Excise Duty: Basic Excise Duty is levied under Section 3 of the Central Excises and Salt Act, 1944.

Special Excise Duty: Central Excise Duty is charged under Section 37 of the Finance Act, 1978.

Education Cess on Excise Duty: According to Section 93 of Finance (No.More items….

How do I calculate excise duty?

Duty is charged to the alcohol content. This is calculated by multiplying the bulk litres by the ABV of the product. The excise duty is then obtained by multiplying this amount by the spirit duty rate.

What is one difference between sales tax and excise tax?

There are two basic differences between sales tax and excise tax. While excise tax is levied only on certain goods and services that are considered harmful or linked to specific health issues, sales tax is applied to a broad range of things. Also, sales tax is calculated a percentage of the sale price.

What is excise duty and when it is applicable?

Excise Duty is a form of indirect tax that is levied on goods that have been manufactured in the country. It is levied by the government. It ideally has to be paid by the manufacturer of goods at the time of introduction of goods in to the market. … Thus, it is applicable on goods sourced from other countries.

What is an excise tax example?

Excise taxes are most often levied upon cigarettes, alcohol, gasoline and gambling. These are often considered superfluous or unnecessary goods and services. To raise taxes on them is to raise their price and to reduce the amount they are used. In this context, excise taxes are sometimes known as “sin taxes.”

What are the features of custom duty?

The customs duty is calculated based on various factors such as the following:The place of acquisition of the good.The place where the goods were made.The material of the goods.Weight and dimensions of the good etc.

What is state excise?

State excise duty under GST Excise duty on production of few items including that on liquor is imposed by state governments. Excise duty on alcohol, alcoholic preparations, and narcotic substances is collected by the State Government and is called “State Excise” duty.

What is the purpose of the excise tax?

Excise taxes are sometimes used to charge taxes on goods or services deemed by society as unnecessary or even harmful. A “sin tax” is applied to the price of things like alcohol and cigarettes, to compensate governments for the cost of dealing with the use of harmful or luxury items.

What is basic excise duty?

There are three main types of excise duty. Basic excise duty (BED) is charged on all goods except salt under Central Excises and Salt Act 1944, at the rates specified in Central Excise Tariff Act 1985.

Is excise duty part of GST?

Yes, excise duty has been subsumed by the Goods and Service Tax (GST) along with other indirect taxes. However, excise duty is still levied on certain items like petroleum and liquor.

Who is liable to pay excise?

The liability to pay excise duty is always on the manufacturer or producer of goods. There are three types of parties who can be considered as manufacturers: a. A person who actually brings new & Identifiable product into existence.

How do I check my customs duty?

First, access the e-payment portal of ICEGATE. Then, enter the import or export code or simply key in the login credentials given by ICEGATE. Finally, click on e-payment. You will be able to check all the e-challans that are in your name.

What is custom and examples?

noun. Custom is defined as a tradition or a usual way to behave. An example of custom is Catholics giving up meat on Fridays during Lent.

What is excise and custom duty?

An indirect tax paid to the Government of India by producers of goods, excise duty is the opposite of Customs duty in that it applies to goods manufactured domestically in the country, while Customs is levied on those coming from outside of the country.

What is the meaning of custom duty?

Definition: Customs Duty is a tax imposed on imports and exports of goods. Description: The rates of customs duties are either specific or on ad valorem basis, that is, it is based on the value of goods.