Central excise
What is Excise Duty? Is it collected by the State Government or the Central Government? How is it different from Sales Tax?
By  Mihir Dharap  |  20 Jul 2016  |  Upvotes: 0  | 

1 Answer(s)

Prateek Kumar
Advocate

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.

Upvotes: 0  |  Downvotes: 0  |  Comments  | 
Login to comment