Duty or tax paid within India on sale, or production for sale of specified goods is called an excise duty. Excises are inland taxes, whereas customs duties are border taxes. Excise duty is an indirect tax which means that the producer or seller pays tax to the government and eventually shifts the burden on buyer by raising the price of the product. Excise is typically imposed in addition to another indirect tax such as a sales tax or VAT.
The liability of central excise duty arises as soon as the goods are manufactured. Incidence of excise duty arises on production or manufacture of goods and not on the sale of goods from place of manufacture. Normally, duty is payable on 'removal' of goods. Every person who produces, manufactures or stores any 'excisable goods', shall pay the duty on such goods. No taxable excisable goods shall be 'removed' without payment of duty. The word 'removal' includes sales, transfer, captive consumption and free distribution.
The requirements of documents vary from user to user based on their jurisdiction. But the basic documents required are as follows:
There are 3 types of duties:
The term "manufacture" includes any process,
Yes. The following categories of persons are exempt from Central Excise registration.