What Is Difference Between Excise Duty And Custom Duty?

How do I calculate excise duty?

Duty is charged to the alcohol content.

This is calculated by multiplying the bulk litres by the ABV of the product.

The excise duty is then obtained by multiplying this amount by the spirit duty rate..

What are the two types of duties?

In the legal sense, duty means ” a legal obligation to do or not to do something….Duties may be classified as follows : Legal Duties and Moral Duties: … Positive or Negative Duties: … Primary and Secondary Duties:More items…

Is customs duty a direct tax?

Income tax, corporate tax, inheritance tax are some instances of direct taxation. … Indirect taxes are those paid by consumers when they buy goods and services. These include excise and customs duties. Customs duty is the charge levied when goods are imported into the country, and is paid by the importer or exporter.

What are the different 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. … Special Excise Duty: Central Excise Duty is charged under Section 37 of the Finance Act, 1978. … Education Cess on Excise Duty: According to Section 93 of Finance (No.More items…

What is excise and custom duty?

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 of the country.

What is basic customs duty?

Basic Duty is a type of duty or tax imposed under the Customs Act (1962). Basic Customs Duty varies for different items from 5% to 40%. … Additional duty also known as countervailing duty or C.V.D is equal to excise duty imposed on a like product manufactured or produced in India.

Is excise duty part of GST?

Yes, excise duty has been subsumed by the Goods and Service Tax (GST) along with other indirect taxes. However, excise duty is still levied on certain items like petroleum and liquor.

What is custom duty in airport?

The goods over and above the free allowances shall be chargeable to customs duty @ 35% + an education cess of 3% i.e. to say the effective rate is 36.05%. 5. Alcoholic drinks and tobacco products imported in excess of free allowance are chargeable to custom duty at the rates applicable to their commercial imports.

What is custom duty and its types?

Custom duty is a type of indirect tax that is levied on all the goods that are imported to the country as well as some goods exported from the country. … While value-based duties are called valorem duties, quantity-based duties are called specific duties.

What is an excise tax example?

Excise taxes are taxes paid when purchases are made on a specific good, such as gasoline. Excise taxes are often included in the price of the product. There are also excise taxes on activities, such as on wagering or on highway usage by trucks. One of the major components of the excise program is motor fuel.

What is the meaning of custom duty?

Definition: Customs Duty is a tax imposed on imports and exports of goods. Description: The rates of customs duties are either specific or on ad valorem basis, that is, it is based on the value of goods.

Who pays the custom duty?

In practice, import duty is levied when imported goods first enter the country. For example, in the United States, when a shipment of goods reaches the border, the owner, purchaser or a Customs broker (the importer of record) must file entry documents at the port of entry and pay the estimated duties to Customs.

What are duty fees?

In economics, a duty is a kind of tax levied by a state. It is often associated with customs, in which context they are also known as tariffs or dues. The term is often used to describe a tax on certain items purchased abroad.

Is VAT included in GST?

The GST will subsume a number of central taxes – such as central excise duty and service tax – and state levies – including VAT, luxury tax, and entertainment tax. Central sales tax or CST is the tax levied on sale of items in inter-state trade. An origin-based tax, CST is charged where the item is sold.