Excise tax or excise duty is a tax charged on the producer of certain goods, commodities and activities. Examples of excise duties are taxes on alcohol, tobacco and gasoline. Manufacture of goods in India attracts Excise Duty under the Central Excise Tariff Act 1985 and the Central Excise act 1944.
Most of the products attract excise duties at the rate of 16%. 2% education cess is also applicable on the aggregate of the duties of excise. In some cases, excise duty is based on the maximum retail price. In fact, it is difficult to categorise the goods subjected to excise tax. List of excise goods are generally provided by the government. |
