An excise or excise tax (sometimes called an excise duty) is a type of tax charged on goods produced within the country (as opposed to customs duties, charged on goods from outside the country). It is a tax on the production or sale of a good.

What are the types of excise?

Types of Excise Duty. Here are the different types of excise duties: Basic Excise Duty: Basic Excise Duty is levied under Section 3 of the Central Excises and Salt Act, 1944. Under this section, all excisable products apart from salt, manufactured of produced in India, are subject to Basic Excise Duty.

Is VAT an excise tax?

VAT is the tax added on goods as it moves from the initial stage of manufacturing to the point of sale while excise duty is the tax added on the manufacturing of goods. VAT is paid by the consumers who buy the product whereas excise duty is paid by the company who is making the product.

Which is the best definition of excise tax?

An excise, or excise tax, is any duty on manufactured goods that is levied at the moment of manufacture rather than at sale.

Where does the word excise come from in English?

Excise is derived from the Dutch accijns, which is presumed to come from the Latin accensare, meaning simply “to tax”. Excise was introduced in the mid 17th century under the Puritan regime. In the British Isles, upon the Restoration of the Monarchy, many of the Puritan social restrictions were overturned,…

Which is the opposite of excise duty in India?

Excise Duty. Excise duty is a form of tax imposed on goods for their production, licensing and sale. An indirect tax paid to the Government of India by producers of goods, excise duty is the opposite of Customs duty in that it applies to goods manufactured domestically in the country, while Customs is levied on those coming from outside …

How is an excise tax different from a customs duty?

An excise tax is the duty on manufactured goods that are levied at the moment of manufacture rather than at sale. Excises are often associated with customs duties that are set on pre-existing goods when they cross a designated border in a specific direction.