Question 1. What Is The Difference Between Sales Tax/vat Andexcise Duty Tax?
The biggest difference between VAT/sales tax and excise duty is that the prior to be charged on consumption of goods, whereas excise is charged on the manufacture and production of goods. Excise duties are also chargeable on a narrower range of products, as compared to VAT and sales tax.
For example:excise is not chargeable on fossil fuels unlike sales tax and VAT. The excise amount is generally accounts for a higher percentage of the maximum retail price of the products.
Question 2. What Are The Different Types Of Excise Registration?
Types of Excise Registration are-
- Single Premises Single Registration is required in case of one premises.
- More than Single Premises If the person has more than one premises requiring registration, separate registration certificate shall be obtained for each of such premises.
Question 3. What Is The Taxable Event In Central Excise?
Manufacture or production of excisable goods in India is taxable event. Central excise duty is charge on manufactured goods & not on sale of goods that means even if goods are not sold, excise duty should be payable on it. Captive consumption, free sample, intermediary goods etc. are also liable to central excise duty even from these goods no revenue is generate. An ownership criterion is irrelevant in paying excise duty. Case Duty is payable at the time of Goods are manufactured.
Question 4. What Is Central Board Of Excise And Customs (cbec)?
- Established in 1855, by George Robinson, the British Governor General of India at the time, Central Board of Excise and Customs was intended to administer and manage customs laws in the country as well as the collection of import duties and land revenue. It is said to be one of the oldest government departments of India.
- The Central Board of Excise and Customs (CBEC) is functions under the the Union Ministry of Finance?s Department of Revenue. The responsibility for administering the laws .
Question 5. Which Goods Are Excisable Goods?
The term ‘Excisable Goods’ means the goods which are specified in the first schedule and the second schedule to the Central Excise Tariff Act, 1985, as being subject to a duty of excise and includes salt.
Question 6. Who Is Liable To Pay The Excise Tax?
The liability to pay tax excise duty is always on the manufacturer or producer of goods.
There are three types of parties who can be considered as manufacturers-
- Those who personally manufacture the goods in question
- Those who get the goods manufactured by employing hired labour
- Those who get the goods manufactured by other parties.
Question 7. What Are The Documents & Process Required For Excise Registration?
Documents Required for Excise Registration:
- Filled Form A-1 (2 Copies)
- PAN No.
- Constitution of Applicant
- Ground Plan for Factory Premises
- Detail of Manufacturing Process
- Tariff Classification Code
- Board Resolution(In Case of Company)
Excise Registration Procedure:
Step 1 :Excise Registration Application to AC/DC [FormA-1(2 copies) and PAN No.]
Step 2: AC/DC will grant Excise Registration Certificate after receipt of application.
Question 8. Are Small Scale Industries Liable To Pay Excise Duty Tax?
Considering the importance and for its promotion small scale industries are exempted from paying of excise duty.
Any Manufacturing unit which has a turnover of less than 1.5 Cr is exempt from payment of Excise duty.
Question 9. What Is The Purpose Of Excise Duty?
There is a necessity of taxes in any country but it is important to know what the Government does with that money. Taxes are levied to ensure the smooth running of the public services in India. Excise duty is a part of it.
It makes sure that the manufacturing sector is involving themselves in the taxation to cover all aspects. Taxes can also be a tool to control the sale of a good, especially narcotic substances and alcohol. The increase in tax amount of such products may have eventually.
Question 10. What Is Classification System Used In Excise Tax?
The excisable goods are classified by using 8-Digit system. Description with eight digits is termed as Tariff item.
A Tariff item under eight digit system would be interpreted as follows:
- Particulars Description
- First Two Digits (33) Refers to chapter No.
- Subsequent Two digits (33 05) Refers to tariff Heading
- Subsequent Two digits (33 05 90) Refers to sub heading within a heading.
- Last Two digits (3305 90 40) Refers to tariff Item.
Example:Tariff Entry 3305 90.
Question 11. What Are Goods For The Purpose Of Excise Tax?
Goods mean an article or substance which is produced in India.
Question 12. Is It Mandatory To Pay Duty On All Goods Manufactured?
Yes, it is mandatory to pay duty on all goods manufactured, unless exempted. For example, duty is not payable on the goods exported out of India. Similarly exemption from payment of duty is available, based on conditions such as kind of raw materials used, value of turnover (clearances) in a financial year, type of process employed etc.
Question 13. What Is The Difference Between Customs Duty Tax And Excise Duty Tax?
If you take a look at both of these taxes at first, both are taxes levied by the government of India but the most significant difference between the two is that customs duty is a tax levied upon goods imported into the country from foreign countries while excise duty is levied by the government on the goods manufactured in the country. It is important to note that many provisions are common to both customs and excise duty. Also, both taxes have similar procedures of administration, tribunal.
Question 14. When Excise Duty Tax Is Chargeable?
Excise is an event based taxes, and taxes is charged once goods are exit from gate of manufacturing plant. The invoice is made on gate pass basis.
Question 15. What Are The Products On Which Excise Duty Is Applicable?
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.
Question 16. What Are The Types Of Excise Duty?
There are three different types of central excise duties which exist in India which are as follows:
Basic – Excise Duty, imposed under section 3 of the ‘Central Excises and Salt Act’ of 1944 on all excisable goods other than salt produced or manufactured in India, at the rates set forth in the schedule to the Central Excise tariff Act, 1985, falls under the category of basic excise duty in India.
Additional – Section 3 of the ‘Additional Duties of Excise Act.
Question 17. What Are The Acts And Rules For The Collection Of Excise Duty Tax?
Under the authority of the Central Excise Act, 1944, the taxes are levied on manufacturing or production of goods. The rates for the taxes are specified under the Central Excise Tariff Act, 1985. This duty is chargeable on certain textile products such as yarn, fiber, etc. also excluding the Additional Excise Duty under Additional Duties of Excise (Textiles and Textile Articles) Act, 1975, which are also charged.. The Additional Duties of Excise (Goods of Special Importance) Act, 1957 and Miscel.
Question 18. What Is The Compliance Mandatory Under Excise Duty Tax?
All the compliance can be divided in two steps:
- Payment of Taxes
- Filing of Return on 10th of next month.
Question 19. How Do You Evaluate Excisable Goods?
It is done in the basis any one of the 2 two provisions enshrined in the Central Excise law in India. These provisions are Valuation under section 4 of the Central Excise Act, 1944 and the Central Excise Tariff Act, 1985, The earlier act is based on normal price where maximum retail price is not to the Central Government or where Tariff values have not been fixed for the articles. Under section 3(2) of the Central Excise Tariff Act, 1985 the valuation is simply based on maximum retail price (MRP).
Question 20. What Is Excise Duty Tax In India?
Central Excise duty is an indirect tax levied on those goods which are manufactured in India and are meant for home consumption. The taxable event is ‘manufacture’ and the liability of central excise duty arises as soon as the goods are manufactured.
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 india.
Question 21. What Is The Consequence Of Evading Payment Of Excise Duty?
Under the different sections of the central excise act, the fines for evading tax can range from twenty-five to fifty per cent of the amount of duty evaded. When you look at the amount of excise you may have to pay, this is a rather large amount and along with the financial repercussions, you also have to encounter a tarnished image.
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