Central Excise Duty comes under Indirect Tax which is paid by people to
the manufacturer who pays it to the government. Taxation in India either charged by
state government or by central government depending on the type of tax.
Central Excise Duty is study of:
The main objective of excise duty are:
Central Excise Duty is levied on production of goods but it arises only on removal of goods. It arises on the removal of goods from the place of storage, i.e. factory or warehouse. If goods are marketable then excise duty is levied. Actual rate is not relevant . Therefore, central Excise Duty is liable for those goods which are given for free replacement during warranty period.
Basic rate of central excise duty is 16%. While in some cases, special duty makes the excise duty 24%. At present, for education called education cess, which is 2% of the excise duty. So, the effective excise duty comes out as 16.32% or 24.48%.