21 Excise for Manufacturers.pdf - Lesson 21 Excise for...

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Chapter 7 / Exercise 7-2
Accounting Using Excel for Success
Reeve/Warren
Expert Verified
265Lesson 21: Excise for ManufacturersExcise duty or Duty of Excise is a tax on goods produced or manufactured in India and intended for home consumption i.e, sale in India. The Excise duty is chargeable at the time of production or manufacturing, but for convenience it is charged at the time of removal. It is basically an indirect tax on the manufacturer or producer which is passed on to the ultimate consumer. The levy and collection of duty of Excise is provided under authority of the Central Excise Act, 1944 at the rates specified under Central Excise Tariff Act, 1985. The duty is commonly referred to as the Basic Excise Duty. Certain items like fibre, yarn and so on also attract Additional Excise Duty under Additional Duties of Excise (Textiles and Textile Articles) Act, 1975 in addition to Basic duty of Excise. 21.1 Basic Concepts of Excise DutyThe following are some of the basic terms related to Excise. 21.1.1 Scope and Applicability Excisable goods means goods specified in the schedule to the Central Excise Tariff Act, 1985 as being subject to a duty of excise. The basic conditions to be satisfied are,The goods must be movable.Lesson ObjectivesOn completion of this lesson, you will learn how to Configure Excise for Manufacturers in Tally.ERP 9 Record Excise Purchase and SalesGenerate Excise Reports
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Chapter 7 / Exercise 7-2
Accounting Using Excel for Success
Reeve/Warren
Expert Verified
Excise for ManufacturersThe goods must be marketable i.e., saleable in the market as such goods. Actual sale of goods in the market is not necessary as excise duty is chargeable on manufacture and not on sale.The goods must be specified in the Central Excise Tariff Act.Who is a Manufacturer ?Manufacturer is a person who actually manufactures or produces excisable goods, i.e. one that actually brings into existence a new and identifiable product.What is Excisable Goods ?Excisable goods means, goods specified in the schedule to the Central Excise Tariff Act, 1985 as being subject to a duty of excise.Types of Excise DutiesAs per Excise Act, the various duties of Excise are explained below : 1.Basic Excise Duty: This is the duty charged under section 3 of the Central Excises and Salt Act,1944 on all excisable goods other than salt which are produced or manufactured in India. Basic Excise Duty [also known as Central Value Added Tax (CENVAT)] is levied at the rates specified in Central Excise Tariff Act. 2.Special Excise Duty: As per Section 37 of the Finance Act,1978 Special excise Duty was lev-ied on all excisable goods on which Basic excise Duty was levied under the Central Excises and Salt Act,1944. Special Excise Duty is levied at the rates specified in the Second Schedule to Central Excise Tariff Act, 1985.3.Education Cess on excise duty: Section 93 of Finance (No. 2) Act, 2004 states that educa-tion cess is 'duty of excise', to be calculated on aggregate of all duties of excise including spe-cial excise duty or any other duty of excise, but excluding education cess on excisable goods.4.Excise duty in case of clearances by EOU: The EOU units are expected to export all their
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