Excise duty

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Excise Duty Type & Registration Procedure

Business Accounting & Taxation Program

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Types of excise duty

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Types of Excise Duty

Basic Excise Duty

AED

(TTA)

AED

(GSI)

Additional Duty of Excise

Special Excise Duty

NCCD


Cont.

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The Following are the various types of Excise Duty–

Basic Excise Duty:• This duty is also known as CENVAT.• It is levied under section 3(1)(a) of Central Excise Act.• Currently the general rate of excise duty on non petroleum products is 12.5%.

Special Excise Duty:• It is levied under section 3(1)(b) of Central Excise Act.• With effect from 01.03.2006, all goods falling in the second schedule of Central Excise Act

have been exempted from the Special Excise Duty.

Additional Excise Duty (Textile and Textile Articles)/ AED (TTA) :• This duty is leviable under section 3 of the Additional Duties of Excise (Textile and Textile

Articles)Act, 1978.• With effect from 09.07.2004 all goods which were liable to AED (TTA) have been exempted

from the Special Excise Duty.

Additional Excise Duty (Goods of Special Importance)/ AED (GSI) :• This is levied in lieu of Sales tax and shared between Central and State Government.• With effect from 01.03.2006 all goods which were liable to AED (GSI) have been exempted

from the such duty.


Cont.

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National Calamity Contingent Duty / NCCD:• It is imposed vide section 136 of the Finance Act, 2001 on –

Pan masala, Branded chewing tobacco, Cigarettes, Domestic crude oil, Mobile phones

Additional Duty of Excise:• It is imposed by way of surcharge on pan masala and certain specified tobacco, products

vide section 85 of the Finance Act, 2005.

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Registration Procedure for Excise Duty


Registration procedure for Excise Duty

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Every manufacturer of excisable goods other than the one specifically exempted is requiredto get register under central excise law.

Registration is also required for every prescribed person

Who carries on trade or

Hold private store room or

Warehouse or

Otherwise uses excisable goods or

An importer who issues an invoice on which CENVAT credit can be taken.

A manufacturer is exempt from registration as long as

The goods manufactured is of nil rate of duty or

Exempt from excise duty.

(SSI unit covered by SSI exemption notification are exempt form obtaining registration.However, such units are required to give a declaration in a prescribed form once thereclearance value reaches 90 lakhs).

After the assessee applies for registration-

He is issued a registration number (registration number is based on PAN)

The registration certificate is valid till the relevant unit is engaged in the manufacturingof excisable goods. It is not required to be renewed.


Cont.

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Documents required for registration (self attested copies)

PAN card copy of the company/firm

PAN card copy of authorized signatory

Ground plan of factory (which should also provide description of boundaries of premises to beregistered)

List of directors/partners

Memorandum and Articles of Association/Partnership deed

General power of attorney (in case application is signed by authorized agent)

Apart from these, department may also require certain additional documents, some of which arementioned hereunder:

PAN card copy of directors/partners other than signatories

Address proofs of the factory premises like:

Copy of purchase agreement along with electricity bill, water bill etc., if factory is owned

Copy of Leave and license agreement along with electricity bill, water bill etc., if factory istaken on lease

No objection certificate’ from the licensor and rent receipt may also be required

Residence proof of directors/partners

Registration Certificate under any other laws, if any

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Flow Showing Excise Duty Payable on Goods


Flow Showing Excise Duty Payable on Goods

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Manufacture in India

Are the final products movable?

Excise Duty not leviableAre the final products

marketable?

Are all the goods specified in Central

Excise Tariff as being subject to a Duty of

Excise?

Manufacture does not result in goods

Manufacture result in goods

Non-Excisable

goods

No

Yes

No

Yes

No

AYes


Cont.

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Are all the goods specified in Central

Excise Tariff as being subject to a Duty of

Excise?

Manufacture result in excisable goods

Whether goods are chargeable to ‘NIL’ rate

of duty?

No excise duty payable

Exempted goods

Are the goods exempt from payment of duty

vide any exemption notification?

Excise Duty payable on goods

Yes

Yes

No

No

Yes

A


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Excise duty