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Why do we have excise duty?

The primary function of these duties and levies is to ensure a constant stream of revenue for the State, with a secondary function of discouraging consumption of certain harmful products; i.e. harmful to human health or to the environment.

Which goods are exempted from excise duty?

Exemption to capital goods and all goods (other than LDO, HSD and petrol) captively consumed for manufacture of final products (other than matches) - Notfn. No. 67/95-CE dated 16.3.1995.

Why is excise duty charged?

Excise duty is a form of indirect tax that is levied by the Central Government of India for the production, sale, or license of certain goods. Excise duty charges are also collected by state governments for alcohol and narcotics.

Why was the excise tax created?

Excise taxes can be used to price an externality or discourage consumption of a product that imposes costs on others. They can also be employed as a user fee to generate revenue from people who use particular government services, revenue which should be used to maintain that government service.

Who is liable to pay excise duty?

6. Who is liable to pay Excise Duty? Ans: The manufacturer or the producer of goods is liable to pay Excise Duty. 7.

In what instances is excise tax applicable?

Excise Tax is a tax on the production, sale or consumption of a commodity in a country.

What is excise duty paid on?

Excise duties are indirect taxes applied to the sale or use of goods such as alcohol, tobacco and energy products.

Which 3 Items generally have an excise tax collected on them?

Nonetheless, while most states levy general sales taxes, every state levies excise taxes on tobacco, alcohol, and gasoline.

What are 4 examples of excise taxes?

Federal excise tax is usually imposed on the sale of things like fuel, airline tickets, heavy trucks and highway tractors, indoor tanning, tires, tobacco and other goods and services.

Who paid excise duty?

6. Who is liable to pay Excise Duty? Ans: The manufacturer or the producer of goods is liable to pay Excise Duty. 7.

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