Excise DutySPONSORED LINKS
In the world of today, taxes represent so much more than monetary aid given to the government. It is the money that goes into the country’s development for a better future for the nation. Since India is a democratic country, this aid is obtained through taxation. Both the state and central government are entailed to levy out taxes. There are several tax types, which are levied through the local or municipality levels.
However, these small taxes affect the area that fall under their jurisdiction. Excise duty tax however fall under the central government. It means that everyone in the country can pay this tax. This tax is imposed on certain goods on their sales catering or production or licenses on specified activities and services.
Excise duty is an inland tax. It is also a form of indirect tax. They are generally taxes to be collected by retail stores or a body which acts as an intermediary from a person who bears the tax payment responsibility as the consumer. The producer is then required to pay the tax to the administration.
Excise duty falls under excise duty Act of 1944. The state government charges commodities such as alcohol, narcotics or even alcoholic products. This fall under the state government jurisdiction. The other goods fall under the central government jurisdiction. The tax is collected by the administration when they move from a factory and the dispatch.SPONSORED LINKS
Rules and act governing excise duty collection
The charges apply to textile commodities such as yawn and fiber. Under the 1944 Act, tax is imposed on production and the manufacture of goods. The tax rates are well specified under the tariff excise Act of 1985.
Central board that deals with customs and excise
It was established by George Robison in 1855. The British general governor at that time was the head. Its main purpose was to manage and administer custom laws in the country and import duty collection and revenue of land. The laws governing excise duty tax are implemented by this statutory body. Its functions include;
- Policy formulation for the collection and levying of the excise and custom duties
- The management of narcotics, customs and the central excise according to the set limits
- Goods smuggling prevention
Excise duty purposes
Taxes are generally levied so as to ensure the smooth operation of all public services in the county.
- It ensures that the sector of manufacturing adequately involves themselves the taxation process.it is also an important tool which is used in the control of certain goods in the market such as narcotics and even alcohol. Theincrease in there taxation rate will reduce the purchasing power.
- Tax in general enables the administration to construct roads, railways and other amenities that the public will use. It also helps to make sure that the country’s defense forces are adequately catered for. Therefore citizen residents are able to live in peace without nay fear.
- The maintenance of water treatment and the country’s cleanliness in all public areas are funded by the taxes paid.