General Knowledge - Indian Economy - Discussion

Discussion :: Indian Economy - Indian Economy (Q.No.28)

28. 

Excise duty is a tax levied on the

[A]. import of goods
[B]. export of goods
[C]. production of goods
[D]. sale of goods

Answer: Option C

Explanation:

What is Excise Duty? Is it collected by the State Government or the Central Government? How is it different from Sales Tax?

Excise duty is a tax on manufacture or production of goods. Excise duty on alcohol, alcoholic preparations, and narcotic substances is collected by the State Government 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 Central Excise Act, 1944.

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.

Reference: http://www.cbec.gov.in/faq.htm


Deep said: (Jul 22, 2010)  
excise duty is levied on the production and custom duty is levied on the import of goods

Kundan said: (Feb 5, 2012)  
An excise or excise tax (sometimes called a duty of excise special tax) is commonly referred to as an inland tax on the sale, or production for sale, of specific goods; or, more narrowly, as a tax on a good produced for sale, or sold, within a country or licenses for specific activities. Excises are distinguished from customs duties, which are taxes on importation. Excises are inland taxes, whereas customs duties are border taxes.

Shashank Verma said: (Sep 24, 2014)  
Does all product have excise duty?

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