Excise & Customs

Based on case (minimum rate assured)

In the Indian tax structure, there are a lot of taxes that people pay for different reasons. Income tax, sales tax, entertainment tax, value added tax etc. All these taxes are existent because in some way or the other it impacts and helps the economy. One such tax that is prevalent in any manufacturing sector is the excise duty and in trade is the custom duty.


Excise duty is levied on goods manufactured in India. It is levied when the goods are ready to go out of the factory. CENVAT is available in case of excisable goods that is to say excise paid on inputs is being given credit of before paying excise duty. There are concessions given to small scale industrialist (SSI) and medium scale industrialists and normally the SSIĀ  need not pay any excise duty (accordingly they do not get CENVAT credit also).


Customs duty is levied on goods imported in India. It is levied on Ports. If goods are imported by illegal means and CD is not paid then these goods are called smuggled goods and liable for prosecution. Only permitted goods can be imported into the country. There are restrictions on quantity and value also so that foreign countries should not dump their cheaper goods here and create unhealthy competition to local manufacturers.

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