Excise Duty All goods that are produced or manufactured in India shall be charged a duty of excise called Cenvat

at the rates specified in the Central Excise Tariff. Every person who manufactures, produces, carries on trade, holds warehouses for excisable goods shall have to obtain registration under the excise laws. No excisable goods may be removed from the factory or a warehouse except under an invoice signed by the owner of the factory or his authorised agent. Every assessee has to submit to the superintendent of Central Excise a monthly return in the specified form. For specified situations such as manufacture of goods exempt under a notification, a prescribed declaration and/ or a financial statement needs to be filed. Credit of service tax paid on input services, by a manufacturer of goods, is now available, in addition to the credit that was available in respect of inputs/ capital goods. The following changes/ amendments have been made vide Budget 2006.
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Exemption from payment of excise duty on manufacture of computers has been withdrawn and with effect from March 1, 2006, excise duty of 12 percent has been imposed on manufacture of computers.
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'Computer' for the above purpose includes CPU cleared separately, CPU with monitor, mouse or keyboard cleared together as a set but shall not include input output devices or accessories such as monitor, key board, mouse, modem, UPS or web camera cleared separately
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Excise duty at the rate of 8 percent has been imposed on packaged software, also known as canned software on electronic media. However, exemption is provided to customized software, (i.e. custom designed software developed for a specific user or client).
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Excise duty on storage devices i.e. DVD drives, USB flash memory and Combo-drives has been reduced from 16 percent to Nil.
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Excise duty on MP3 Players and MPEG4 Players reduced from 16% to 8%. Further, although the Finance Minister, in his speech stated that software downloaded from the internet are to be exempt from the levy of excise duty of 8%, no specific exemption notification has been issued in that regard. Pursuant to the Finance Act, 2006 the Central Excise Tariff (µTariff Act¶) has been further amended with effect from 1 January 2007 for alignment with the Harmonized System of Nomenclature (HSN). The Central Government has issued several notifications for amending the existing exemption notifications.

2006 has been issued which provides for levy of excise duty at the rate of 8% on Software (HSN classification 8523). Type of excise duty: . dated December 30.While the primary purpose of the new notifications is to ensure that the exemptions already granted are available after the change in the classification of the goods. 2006 that the authorities do not intend to levy excise duty on downloaded software although there is an ambiguity in that regard in the absence of a specific exemption to that effect /////////////////////////////////////// Excise duty is the biggest source of revenue for the government of India. it seems from the Budget speech and Memorandum to the Finance Bill..e. 2Additional excise duty: .there are three types of excise duty which are charged on the products such as 1Basic excise duty: . a separate Notification No 49/2006. there are some amendments for change in the rate of effective duty or for the purpose of clarification It appears that software downloaded from internet should not be liable because there is no excise tariff entry for software which is downloaded from internet. However. 3Special excise duty: . This leads to an implicit ambiguity regarding the classification of software downloaded through email or a web server or a FTP server.basic excise duty is charged on all the goods produced or manufactured in India except salt for domestic use.in the section 3 of excise act 1955 the finance department also levied some additional excise duty on some products and the additional excise duty will be shared by the state as well as central government. in view of the amendment in the Tariff Act. Excise duty is charged to the manufactures who manufactures the product for domestic use. whether while being downloaded could fall under the category of 'software¶ as classified under the amended tariff heading 8523 and be subject to levy of excise duty at the rate of 8%.special excise duty is charged on some products or area wise as to help some poor or affected area of the India. This is charged only time to time and no special rates and procedure is available for it. This duty is charged by the central government and the state government has no link with it. Accordingly. So the duty is chargeable as well as payable as soon as the goods manufactured and the duty is paid by the manufactures and then push into the market for consumption. . The rates of basic excise duty are changing year to year as in the annual budget of the India. i.

so this was the first step to move forward to DTC in this annual. 5Sometimes the type of process doesn¶t count to be manufacturing and that is exempted from excise.8 weeks ago y EXCEL BASED CALCULATORS FOR ALL OF YOUR NEED In now a days t's neccessary to calculate all the things to get a good amount of money in hands. 4Almost all the products have exemption to the sale up to 1.Exemption of the excise duty:-there is some exemption available to the manufactures means some manufactures needn¶t to pay the excise duty as well as needn¶t to apply for the excise number.12 months ago y ALL ABOUT DIVIDENDS AND INCOME TAX TREATMENT Meaning is paid by a company out of its profits. .12 months ago y TALLY SHORTCUT FORMULA AND SHORT KEYS Tally as all of us know is a accounting software. .4 weeks ago y Income Exempted in Income Tax Act Section 10 . . The exemption available to 123Salt manufactures Exporters Sometime the exemption is available for the nature of raw material used. . 6y SEZ TDS ON SALARY CALCULATOR As you know there is tax on salary amount with the income tax slabs.5 crores per annum for the excise. .16 months ago y All About Income Tax Rules 2010-11 Indian government wants to implement DTC (Direct Tax Code) as soon as possible. .10 months ago y INCOME TAX RULE 40(A) 3 FOR PAYMENT EXCEEDING 20000 & EXCEPTIONS Income tax has some rules to minimize the evasion of the payment made in cash. budget.

11 months ago y TAX CONSIDERATION FOR SETTING UP A NEW BUSINESS While setting up a new business. Excise duty on naphtha which is used in petrol and diesel is reduced to 14%. On special boiling spirits the excise duty is reduced to 14%. . . On petrol driven trucks and trolley the excise duty is reduced to 8% which was 20% earlier.Section 10 of income tax act defines that some income are exempted from income tax means there is no income tax on these income. . one has to consider the location of the business and the nature of the business.5 weeks ago Rates of excise duty in the annual budget of 2010 for the assessment year 2009-10 Excise duty is raised from 4 to 8% on the following items food products and bakery products medicines medical equipments paper and paperboard power pumps for water paraxylene footwear above 250 but less than 750 pressure cookers bulbs CFL Cars for physically handicapped On Large cars above 2000cc and SUVs. the excise duty reduced to 15000 from 20000.

. The scheme of small scale industry (on which the excise is exempted up to sale of 1.2 weeks ago y INCOME TAX SLABS FOR THE LAST TEN ASSESSMENT YEARS Income tax slabs are very normal thing and normally one need to remember it in once a year when there is a time to fill return.3 weeks ago y ALL ABOUT SERVICE TAX . Excise duty on man made fiber and yarn has increased to 8% which was 4% earlier.Cash Credit is the loan account taken by the customers from the bank. 130/2010 ABOUT EXEMPT OF DIFFERENT GOODS TO DUTY Custom department on 23rd of december 2010 issued a notification no. and the assessee offers no explanation about the nature and source of that income or found no satisfaction answer in.5 crores) is exempted to print lamination industry which uses the brand name. On PTA and DMT excise duty is increased to 8% which was 4% earlier.in y EXCEL CALCULATOR FOR INTEREST ON CASH CREDIT ACCOUNT Cash credit:. ..3 days ago y SECTION 68 OF INCOME TAX ACT ABOUT CASH CREDIT Where any sums is found credited in the books of an assessee maintained for previous year.- Diesel mixed with 20% bio diesel is full exempt from excise. .10 days ago y INCOME TAX CALCULATOR FOR THE LAST 4 ASSESSMENT YEARS Calculating the amount of income tax is a real hard game as it requires lot of calculation and our income tax slabs are also complex. .gov. .8 days ago y SECTION 92A OF INCOME TAX ACT ABOUT ASSOCIATED ENTERPRISES Section 92 A is all about special provision relating to avoidance of tax to associated person. Excise duty on branded jewellery and articles are reduced to zero.11 days ago y CUSTOM NOTIFICATION NO. For more rates of excise as well as the defaults rates go to central excise website cbse. ..

3 weeks ago What is Excise Duty? Is it collected by the State Government or the Central Government? How is it different from Sales Tax? A: Excise duty is a tax on manufacture or production of goods. 2. 1944 by the appropriate statutory authority. I am a new unit registered with Excise. The Excise duty on rest of goods is called "Central Excise" duty and is collected in terms of Section 3 of the Central Excise Act. 1944. . hotels. Price declaration of excisable goods . mobiles. Sales Tax is different from the Excise duty as former is a tax on the act of sale while the latter is a tax on the act of manufacture or production of goods.under Rule 173B of the Central Excise Rules. 1944. and narcotic substances is collected by the State Government and is called "State Excise" duty. A: 1. Declaration of goods Manufactured/produced . 1944. As you know service tax is charged by the central government on the services we used like transportation. Excise duty on alcohol. 1985 attract Central Excise duty unless specified to the contrary in the Act itself or under any notification issued under the Central Excise Act. alcoholic preparations. Marketing pattern of the Company under Rule 173C 3 (A) of the Rules. What are the important declarations that I should file with the department.interms of Rule 173C of the of the Central Excise Rules. . 3. What are the items on which Central Excise duty is leviable? A: All goods listed in the Central Excise Tariff Act. consultancy etc.

price list.500 per 10 gram. to be reduced from 7. Such projects will now attract applicable CVD. A list in duplicate of all the records which include account.5% to 5%. Customs duty on unworked corals to be reduced from 5% to Nil. Customs duty on LCD Panels for manufacture of LCD televisions to be reduced from 10% to 5%. purchase. Concessional customs duty of 5% on specified machinery for tea.250 per 10 gram to Rs.5% to 2. by way of excise duty exemption. CVD exemption on Aerial Passenger Ropeway Projects to be withdrawn.5% to 5% with Nil CVD (by way of excise duty exemption). Customs duty on serially numbered gold bars (other than tola bars) and gold coins to be increased from Rs.5% to 5%. subject to specified conditions. Customs duty on cotton waste to be reduced from 15% to 10%. . Customs duty on other forms of gold to be increased from Rs. Customs duty exemption on concrete batching plants of capacity 50 cum per hour or more to be withdrawn. coffee and rubber plantations to be reintroduced for one year. Full exemption from 4% special CVD on parts for manufacture of mobile phones and accessories to be reintroduced for one year. storage.200 per 10 gram. Customs duty on specified heart devices. returns. sales or delivery of the goods including inputs and capital goods.5%. /////////////////////////////////////////// y y y y y y y y y y y y y y y y y y Customs duty of 5% to be imposed on Set Top Box for television broadcasting. Customs duty on permanent magnets for PM synchronous generator above 500 KW used in wind operated electricity generators to be reduced from 7.1000 per Kg. prepared or maintained by him for accounting of transactions in regard to receipt. List of specified raw materials/inputs imported by manufacturer-exporters of sports goods which are exempt from customs duty. delivery challans and debit or credit note. Such plants will now attract customs duty of 7. Customs duty on wool waste to be reduced from 15% to 10%. agreement.500 per Kg.2010. to be expanded. statement or any other source document which forms the basis of accounting like sale/purchase invoices. Customs duty on silver to be increased from Rs.4. Customs duty on â¼×mechanical harvester⼌ for coffee plantation to be reduced from 7.5%. textile products and footwear industry which are fully exempt from customs duty. namely artificial heart and PDA/ASD occlusion device. upto 06. invoice. journal voucher. Customs duty on 10 specified life saving drugs/vaccine and their bulk drugs to be reduced from 10% to 5% with Nil CVD (by way of excise duty exemption). manufacture. Customs duty on bio-diesel to be reduced from 7. CVD on such harvesters has also been reduced from 8% to nil. Customs duty on rock phosphate to be reduced from 5% to 2%. to Rs. subject to specified conditions. List of specified raw materials and equipment imported by manufacturer-exporters of leather goods. These increases also to be applicable when gold and silver (including ornaments) are imported as personal baggage.100 per 10 gram to Rs.07. to be expanded by including five additional items.

the central Board of Excises Customs (CBEC) bring out periodically a book called the "Indian Customs Tariff Guide" which contains various tariff rulings issued by the CBEC. Customs duty on inflatable rafts. In order to give a broad guide as to classification of goods for the purpose of duty liability. For the purpose of exercising proper surveillance over imports and exports. 1975 as amended from time to time or any other law for the time being in force. The Act also contains detailed provisions for warehousing of the imported goods and manufacture of goods is also possible in the warehouses. Such duty is leviable on the value . For a person who do not actually import or export goods customs has relevance in so far as they bring any baggage from abroad. the routes by which above goods may pass by land or inland water into or out of Indian and the ports which alone shall be coastal ports. CVD exemption to be provided on the portion of the value which represents the consideration for transfer of the right to use such software. Additional Duty (Countervailing Duty) (CVD): This additional duty is levied under section 3 (1) of the Custom Tariff Act and is equal to excise duty levied on a like product manufactured or produced in India. water skis. sail-boards and other water sports equipment to be fully exempted. Basic Duty: This is the basic duty levied under the Customs Act. the following are the various types of duties which are leviable. The rate varies for different items from 5% to 40%. snow-skis. subject to specified conditions. Besides. the excise duty that would be leviable on that product had it been manufactured or produced in India is the duty payable. If a like product is not manufactured or produced in India. Types of duties Under the custom laws.y y On packaged or canned software. the Central Government has the power to notify the ports and airports for the unloading of the imported goods and loading of the exported goods. surf-boats. the highest rate among those rates is the rate applicable. the places for clearance of goods imported or to be exported. The Customs Act was formulated in 1962 to prevent illegal imports and exports of goods. If the product is leviable at different rates. all imports are sought to be subject to a duty with a view to affording protection to indigenous industries as well as to keep the imports to the minimum in the interests of securing the exchange rate of Indian currency. Duties of customs are levied on goods imported or exported from India at the rate specified under the customs Tariff Act.

Dumping duty can be imposed even when goods are imported indirectly or after changing the condition of goods. Such duty will be payable upto the date specified in the notification. The notification for levy of such duties must be introduced in the Parliament in the next session by way of a bill or in the same session if Parliament is in session. as the case may be. This is known as dumping. if the goods have been sold at less than normal value. After the exact rate of dump ing duty is finally determined. Export Duty: Such duty is levied on export of goods. additional duty may be collected on a provisional basis and after final determination. the Central Government may levy additional duty equal to the margin of dumping on such articles. There are however certain restrictions on imposing dumping duties in case of countries which are signatories to the GATT or on countries given "Most Favoured Nation Status" under agreement. eg. Additional Duty to compensate duty on inputs used by Indian manufacturers. the Central government may vary the provisional rate of dumping duty. If the bill is not passed within six months of introduction in Parliament. Protective Duty: If the Tariff Commission set up by law recommends that in order to protect the interests of Indian industry. Protective duty may be cancelled or varied by notification. If the customs value of goods is Rs.1100/-. CVD will be Rs. This Additional Duty is levied under section 3(3) of the Customs Act. At present very few articles such as skins and leather are .of goods plus basic custom duty payable. Duty on Bounty Fed Articles: In case a foreign country subsidises its exporters for exporting goods to India. If the amount of subsidy or bounty cannot be clearly deter mined immediately. Dumping duty can be levied on imports on such countries only if the Central Government proves that import of such goods in India at such low prices causes material injury to Indian industry. such duty may be provisionally imposed. the Central Government may levy protective anti-dumping duties at the rate recommended on specified goods. It can be charged on all goods by the central government to counter balance excise duty leviable to raw materials. the notification ceases to have force but the action already undertaken under the notification remains valid. components and other inputs similar to those used in the production of such good. the Central Government may import additional import duty equal to the amount of such subsidy or bounty. Such notification must also be placed before Parliament for approval as above. foreign sellers abroad may export into India goods at prices below the amounts charged by them in their domestic markets in order to capture Indian markets to the detriment of Indian industry. difference may be collected or refunded. In order to prevent dumping. Anti-dumping Duty: Sometimes. Pending determination of margin of dumping. 5000 and rate of basic customs duty is 10% and excise duty on similar goods produced in India is 20%.

10000.subject to export duty. Excise duty on chassis of such trucks/lorries to be reduced from â¼×20% + Rs.per vehicle to Rs.20 per bulb o Compact Fluorescent Lamps o Cars for physically handicapped Specific component of excise duty applicable to large cars/utility vehicles of engine capacity 2000 cc and above to be reduced from Rs. /////////////////////////////////////////////////////////// For the Assessment Year 2009-10 y y y y y y Excise duty rate on items currently attracting 4% to be raised to 8% with following major exceptions: o Specified food items including biscuits. Such increase in duty must be by way of notification which is to be placed in the Parliament within the session and if it is not in session. Excise duty on petrol driven trucks/lorries to be reduced from 20% to 8%.000 per vehicle.750 per pair o Pressure cookers o Vacuum and gas filled bulbs of RSP not exceeding Rs. The main purpose of this duty is to restrict exports of certain goods. 20. . Notification should be approved within 15 days.000/.10000⼌ to â¼×8% + Rs. Excise duty on Special Boiling Point spirits to be reduced to 14%. Excise duty on naphtha to be reduced to 14%. paperboard and articles thereof o Paraxylene o Power driven pumps for handling water o Footwear of RSP exceeding Rs. cakes and pastries o Drugs and pharmaceutical products falling under Chapter 30 o Medical equipment o Certain varieties of paper. it should be placed within seven days when the next session starts. sharbats.15. The Central Government has been granted emergency powers to increase import or export duties if the need so arises.250 but not exceeding Rs.

Excise duty exemption on â¼×recorded smart cards⼌ and â¼×recorded proximity cards and tags⼌ to be made optional. The ad valorem component of excise duty of 6% on diesel intended for sale with a brand name to be converted into a specific rate.4. Excise duty for man-made and natural fibres other than pure cotton.50 per litre instead of â¼×6% + Rs.25 per litre⼌. Full exemption from excise duty to be provided on goods of Chapter 68 of Central Excise Tariff manufactured at the site of construction for use in construction work at such site.13 per litre⼌. Benefit of SSI exemption scheme to be extended to printed y y y y y y y . Manufacturers have the option to pay the applicable excise duty and avail the credit of duty paid on inputs. The scheme of optional excise duty of 4% for pure cotton to be restored. such diesel would now attract total excise duty of Rs. An optional excise duty exemption to be provided to tops of manmade fibre manufactured from duty paid tow at par with tops manufactured from duty paid staple fibre. Excise duty on PTA and DMT to be increased from 4% to 8%.14. Consequently.y y y y y y y y y y y Duty paid High Speed Diesel blended with upto 20% biodiesel to be fully exempted from excise duties. such petrol would now attract total excise duty of Rs. Consequently.75 per litre instead of â¼×6% + Rs. Suitable adjustments to be made in the rates of duty applicable to DTA clearances of textile goods made by Export Oriented Units using indigenous raw materials/ inputs for manufacture of such goods. Excise duty on polyester chips to be increased from 4% to 8%. Excise duty on acrylonitrile to be increased from 4% to 8%.3. to be increased from 4% to 8% under the existing optional scheme. beyond the fibre and yarn stage. EVA compound manufactured on job work for further use in manufacture of footwear to be exempted from excise duty. The ad valorem component of excise duty of 6% on petrol intended for sale with a brand name to be converted into a specific rate. Excise duty on manmade fibre and yarn to be increased from 4% to 8%.

sufficient supply of essential commodities. industrial growth.y y y laminated rolls bearing the brand name of others by excluding this item from the purview of the brand name restriction. The Customs Act was formulated in 1962 to prevent illegal imports and exports of goods. The scheme of Central Excise levy is suitably adapted and modified to serve different purposes of price control. On packaged or canned software. excise duty exemption to be provided on the portion of the value which represents the consideration for transfer of the right to use such software. Excise duty on branded articles of jewellery to be reduced from 2% to Nil. For a person who do not actually import or export goods customs has relevance in so far as they bring any baggage from abroad. Besides. the Central Government has the power to notify the ports and airports for the unloading of the imported goods and loading of the exported goods. The Union Government tries to achieve different socio-economic objectives by making suitable adjustments in the scope and quantum of levy of Central Excise duty. the routes by which above goods may pass by land or inland water into or out of Indian and the ports which alone shall be coastal ports In order to give a broad guide as to classification of goods for the purpose of duty liability. For the purpose of exercising proper surveillance over imports and exports. the central Board of Excises Customs (CBEC) bring out periodically a book called the "Indian Customs Tariff Guide" which contains various tariff rulings issued by the CBEC. . Duties of customs are levied on goods imported or exported from India at the rate specified under the customs Tariff Act. Importance of Central Excise Duty Central excise revenue is the biggest single source of revenue for the Government of India. the places for clearance of goods imported or to be exported. promotion of small scale industries and like Authority for collecting the Central Excise duty. The Act also contains detailed provisions for warehousing of the imported goods and manufacture of goods is also possible in the warehouses. 1975 as amended from time to time or any other law for the time being in force. subject to specified conditions. all imports are sought to be subject to a duty with a view to affording protection to indigenous industries as well as to keep the imports to the minimum in the interests of securing the exchange rate of Indian currency.

duties of excise on all excisable goods other than salt which are produced or manufactured in India at the rates set forth in the schedule to the Central excise Tariff Act.1944. Charging section is Section 3 of the Central Excises and Salt Act. The excise duty is levied in pursuance of Entry 45 of the Central List in Government of India Act. Rules 9 and 49 of the Central excise Rules.1985.Article 265 of the Constitution of India has laid down that both levy and collection of taxes shall be under the authority of law.1944 provides that there shall be levied and collected in such manner as may be prescribed.it is therefore clear that as soon as the goods in question are produced or manufactured. Liability to pay Central Excise Duty Section 3 of the Central excises and Salt Act.1944 provides for the collection of duty . While Section 3 of the Central Excises and salt Act. However for convenience duty is collected at the time of removal of the goods. they will be liable to payment of Excise duty.1935 as adopted by entry 84 of List I of the seventh Schedule of the Constitution of India.1944 lays down the taxable event.

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