In today's World the relevance of taxes are a lot more than just financial aid to the Government. It is also, the money that goes in for building the future of a nation. India being a democratic country requires this aid through taxes. The Central Government levies taxes along with the state government to their respective states. There are a few taxes that are levied by the local Municipality as well. Excise Duty falls under the Central Government of India.
This tax is levied on certain goods for their production or sale catering or on licenses on specific services and activities. Excise duty is an inland tax unlike custom duties is an inland tax. Also this duty charges are a form of Indirect Tax. Indirect taxes are generally collected by a retail store or an intermediary body from the person who ultimately bears the responsibility of paying the tax as a consumer. The producer of the goods then pays this tax to the government. This amount is excise of the VAT (Value Added Tax) and sales tax that is charged to the consumers when purchasing a good.
The excise duty falls under the Excise Duty Act, 1944. The State Government charges them on certain goods such as narcotics, alcohol or alcoholic products, the duty charges on other goods are collected by the Central Government, hence the term, ‘Central Excise Duty’. The tax is however, collected by the Government when the good are being removed from the factory and dispatch.
# Products with Excise Duty Charges:Besides narcotics and alcohol, collected by the corresponding state Government, the Central Government charges excise duty on the following products:
* Live Animals and Animal Products:This includes live animals, meat and edible meat offal, Fish and Crustaceans, Molluscs and other Aquatic Invertebrates, Birds' Eggs, Natural Honey; Edible Products of Animal Origin, not elsewhere specified or included, Products of Animal Origin, not elsewhere specified or included.
* Vegetable Products:This category includes Live trees and other Plants; Bulb, Roots and the like; Cut flowers and Ornamental Foliage, Edible Vegetables and Certain Roots and Tubers.
* Other Products:Edible Fruit and Nuts; Peel of Citrus Fruit or Melons, Coffee, Tea, Mate, Spices, Products of the Milling Industry; Malt; Starches; Inulin; Wheat Gluten, cereals, Products of the Milling Industry; Malt; Starches; Inulin; Wheat Gluten, Oil Seeds and Oleaginous Fruits; Miscellaneous Grains, Seeds and Fruit; Industrial or Medicinal Plants; Straw and Fodder, Gums, Resins and other Vegetable Saps and Extracts and Vegetable Plaiting Materials.
* Products Made Out of Non-renewable Sources:Products made from precious Metals and other Metals, other industrial chemicals.