![Module 1 - Central Excise CENVAT Charge of excise duty - Section 3 of CEA, 1944 6 1.6 Levy v. Collection - Concept difference 7 1.7 Factory [Section 2( e )] 9](https://static.fdocuments.net/img/165x107/reader024/reader/2021020104/5a78ea197f8b9a77088cff58/r-1.jpg?t=1.1.3)
Excise duty: ( CENVAT,Types of Excise Duty,Basis Of Payment Of Excise Duty,Who is liable to pay...
of 28
date post
03-Jun-2018Category
Documents
view
226download
0
Embed Size (px)
Transcript of Excise duty: ( CENVAT,Types of Excise Duty,Basis Of Payment Of Excise Duty,Who is liable to pay...
8/13/2019 Excise duty: ( CENVAT,Types of Excise Duty,Basis Of Payment Of Excise Duty,Who is liable to pay excise duty,Excise duty Calculation)
1/28
Excise Duty
8/13/2019 Excise duty: ( CENVAT,Types of Excise Duty,Basis Of Payment Of Excise Duty,Who is liable to pay excise duty,Excise duty Calculation)
2/28
An excise or excise tax (sometimes called an excise duty) is atype of tax charged on goods produced within the country.
It is a form of indirect tax.
Excises are distinguished from customs duties, which are taxeson imports. Excises are inland taxes, whereas customs dutiesare border taxes.
8/13/2019 Excise duty: ( CENVAT,Types of Excise Duty,Basis Of Payment Of Excise Duty,Who is liable to pay excise duty,Excise duty Calculation)
3/28
The term "excisable goods" means the goods which are specified
in the First Schedule and the Second Schedule of the Central
Excise Tariff Act, 1985 , as being subject to a duty of excise and
includes salt.
8/13/2019 Excise duty: ( CENVAT,Types of Excise Duty,Basis Of Payment Of Excise Duty,Who is liable to pay excise duty,Excise duty Calculation)
4/28
A cut in excise duty on capital goods to 10% from12%
On small carsexcise duty reduced to 8% from 12%
Excise duty on sports utility vehicles (SUVs) wascut to 24% from 30%
On large and mid-sized cars, the excise duty wasreduced to 20% from 27%
8/13/2019 Excise duty: ( CENVAT,Types of Excise Duty,Basis Of Payment Of Excise Duty,Who is liable to pay excise duty,Excise duty Calculation)
5/28
CENVAT Credit Rules
To remove the cascading effect of excise duty, the Excise Duty
paid on the inputs and capital goods, which are used in themanufacture of final product are permissible to be set-off against
the excise duty liability on the final products under the CENVAT
Credit Rules, 2004.
8/13/2019 Excise duty: ( CENVAT,Types of Excise Duty,Basis Of Payment Of Excise Duty,Who is liable to pay excise duty,Excise duty Calculation)
6/28
8/13/2019 Excise duty: ( CENVAT,Types of Excise Duty,Basis Of Payment Of Excise Duty,Who is liable to pay excise duty,Excise duty Calculation)
7/28
Could be availed only onduplicate copy of invoice
Contained provision that dutypaying document will be valid only
for 6 months.
Credit on capital goods could betaken immediately.
Can be availed on any copy ofinvoice.
CENVAT does not contain anysuch restriction.
Credit has to be taken in twoyearly instalments of 50% each.
8/13/2019 Excise duty: ( CENVAT,Types of Excise Duty,Basis Of Payment Of Excise Duty,Who is liable to pay excise duty,Excise duty Calculation)
8/28
Basic-u/s 3 of the 'Central Excises and Salt Act' of
1944
Additional-u/s 3 of the 'Additional Duties of Excise Act'
of 1957
Special-u/s 37 of the Finance Act, 1978
8/13/2019 Excise duty: ( CENVAT,Types of Excise Duty,Basis Of Payment Of Excise Duty,Who is liable to pay excise duty,Excise duty Calculation)
9/28
1. Specific Duty
2. Duty based on value(advalorem duty)
3. Duty based on the Tariff value
4. Duty based on maximum retail price
5. Duty based on transaction value
6. Compounded Duty
8/13/2019 Excise duty: ( CENVAT,Types of Excise Duty,Basis Of Payment Of Excise Duty,Who is liable to pay excise duty,Excise duty Calculation)
10/28
Manufacturer or producer of goods, Those who-
i. personally manufacture the goods in question
ii. get the goods manufactured by employing hired labour
iii. get the goods manufactured by other parties
To pay 25-50% of the amount of duty evaded
8/13/2019 Excise duty: ( CENVAT,Types of Excise Duty,Basis Of Payment Of Excise Duty,Who is liable to pay excise duty,Excise duty Calculation)
11/28
The Central Excise Tariff Act,1985
First Schedule-BasicExcise Duty is leviable
Second schedule-special Excise duty is
leviable
Third schedule-Deemedmanufacture in relation tovarious specified groups.
It is divided in 96 chapters grouped in 20 sections
8 digit classification code
8/13/2019 Excise duty: ( CENVAT,Types of Excise Duty,Basis Of Payment Of Excise Duty,Who is liable to pay excise duty,Excise duty Calculation)
12/28
SECTION 1 ANIMAL PRODUCTS
SECTION 2 VEGITABLE PRODUCTS
SECTION 3 ANIMAL OR VEGS FATS
SECTION 4 PREPARED FOODSTUFF & BEVERAGES
SECTION 5 MINERAL PRODUCTS
SECTION 6 CHEMICALS, FERTILIZERS, SOAP ETC
SECTION 7 PLASTIC , RUBBER & THEIR ARTICLES
SECTION 8 LEATHER & ARTICLES
SECTION 9 WOOD , CORK, STRAW & THEIR ARTICLES
SECTION 10 PULP, PAPER PAPER BOARD ARTICLES
SECTION 11 TEXTILE & TEXTILE PRODUCTTS
SECTION 12 FOOTWEAR, HEADGEAR,UMBRELLAS,
SECTION 13 ARTICLES OF STONE, PLASTER,CERAMIC GLASS
SECTION 14 PEARLS & PRECIOUS METALS
SECTION 15 BASE METALS & ARTICLES OF BASE METALS
SECTION 16 MACHINERY,MECHANICAL APPLIANCES,ELECTRICAL EQUIPMENTS
SECTION 17 VEHICLES, AIRCRAFTS,VESSELS
SECTION 18
OPTICAL PHOTOGRAPHIC,MEDICAL,SURGICAL INSTRUMENTS,CLOCKSMUSICAL
INSTRUMENTS
SECTION 19 ARMS & AMMUNITION
SECTION 20 MISC MANUFACTURED ARTICLES LIKE FURNITURE TOYS ETC
SECTION 21 WORKS OF ART, COLLECTORS' PIECES & ANTIIQUES
8/13/2019 Excise duty: ( CENVAT,Types of Excise Duty,Basis Of Payment Of Excise Duty,Who is liable to pay excise duty,Excise duty Calculation)
13/28
The basic rate of excise duty is 16%
there is a special duty if 8% which makes the excise duty in
those cases at 24%.
There is at present an education cess, which is 2% of theexcise duty
The effective excise duty comes out as 16.32% or 24.48%.
8/13/2019 Excise duty: ( CENVAT,Types of Excise Duty,Basis Of Payment Of Excise Duty,Who is liable to pay excise duty,Excise duty Calculation)
14/28
Following items are included:
1. Primary packing or main packing or necessary packing.
2. Royalty charges.
3. Commission to sales agent
Following items are excluded:
1. Secondary packing.
2. Returnable primary packing like cold drinks bottles, LPG cylinders.
3. Discount given at the time of sales.
Assessable Value = (sale pricedeductions) /
(1+ rate of duty)
8/13/2019 Excise duty: ( CENVAT,Types of Excise Duty,Basis Of Payment Of Excise Duty,Who is liable to pay excise duty,Excise duty Calculation)
15/28
8/13/2019 Excise duty: ( CENVAT,Types of Excise Duty,Basis Of Payment Of Excise Duty,Who is liable to pay excise duty,Excise duty Calculation)
16/28
Goods produced in a educational and research institute during the course of
technical training .
Goods produced in Government Factories, Mines, Mints, prisons Defence
Production etc.
Duty in excess of 10% is exempted on goods for supply to Gas Authority of India
Limited, Oil and Natural Gas Corporation Ltd., or the Oil India Limited.
Certain specified goods connected with solar and natural energy.
Specified goods used by units in Export Processing Zones/Free Trade Zones/100%
Export Oriented undertakings but not sold within India
8/13/2019 Excise duty: ( CENVAT,Types of Excise Duty,Basis Of Payment Of Excise Duty,Who is liable to pay excise duty,Excise duty Calculation)
17/28
8/13/2019 Excise duty: ( CENVAT,Types of Excise Duty,Basis Of Payment Of Excise Duty,Who is liable to pay excise duty,Excise duty Calculation)
18/28
Hike in Excise Duty for non-taxi
SUVs
Change in rate for Chassis
Impact on Sales
Impact on Companies
8/13/2019 Excise duty: ( CENVAT,Types of Excise Duty,Basis Of Payment Of Excise Duty,Who is liable to pay excise duty,Excise duty Calculation)
19/28
8/13/2019 Excise duty: ( CENVAT,Types of Excise Duty,Basis Of Payment Of Excise Duty,Who is liable to pay excise duty,Excise duty Calculation)
20/28
Imposed excise duty on Silver
Negative impact on the sector
8/13/2019 Excise duty: ( CENVAT,Types of Excise Duty,Basis Of Payment Of Excise Duty,Who is liable to pay excise duty,Excise duty Calculation)
21/28
Indian Textile Industry is one of the leading textile industries in the world.
It contributes about 14% to industrial production, 4% to the GDP, and 17%
to the country's export earnings.
Estimated Size 89 Billion and expected to rise to 223 billion by 2021
Domestic Textile market in India is 58 billion and will grow to 141 billion
by 2021
It also provides direct employment to over 35 million persons which aresecond only after agriculture.
8/13/2019 Excise duty: ( CENVAT,Types of Excise Duty,Basis Of Payment Of Excise Duty,Who is liable to pay excise duty,Excise duty Calculation)
22/28
4.5% in the world is the share of the textile market of India.
8/13/2019 Excise duty: ( CENVAT,Types of Excise Duty,Basis Of Payment Of Excise Duty,Who is liable to pay excise duty,Excise duty Calculation)
23/28
Prices of garments had risen by near 25% ever since a net rise of 3.6% on
excise duty was introduced in 2012-13
The Indian ready made garment industry was limping.
The Centre had levied 10% central excise duty during 2010-11 and
increased to 12% during 2012-13 budget.
Roll back on Excise Duty to 0% Excise Duty
protection to the domestic industry from cheap I
