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Home » Other Types of Tax » Excise Tax

Excise Tax

Excise tax which is also known as the excise duty, is a particular type of tax is charged on goods which are produced within the premises of a particular country. This particular form of tax is opposed to the customs duties and is charged on those goods which are brought from outside of the country. In various countries the system of filing the excise tax is different. For the purpose of making you replete with various excise tax filing system, here we are providing you with all the details about excise tax in different systems and countries:

  • Excise Tax in India: In India, according to the excise tax authority, the excise tax is required to be levied on the manufacturer of goods in that very context where those goods leave the place of manufacture. This very form of tax was previously known as the Central Excise Duty and in the modern context this tax is now known as the Central Value Added Tax or CENVAT. Manufacturers of various kind of goods have the capacity to deduce the duty which is paid on materials and are used in the process of manufacturing goods by using that duty as a credit against excise tax through a particular process, which is known as the Central Value Added Tax Credit or CENVAT Credit. The process of offsetting or deduction was previously known as the Modified Value Added Tax or the MODVAT.

  • Excise in U.S.: In the U.S. context the definition of excise tax quite different from the other definitions in the various contexts. According to this definition, the excise is particular form of tax which is levied upon manufacture and over those persons who are related to the sale or for a business license or charter. This definition can be cited in the legal dictionary of the Law.com and this very form of tax has to be distinguished from a tax on real property, income or estates. In the scenario of the United States, the term excise implies either such a tax which is collected from other sources than a property tax or capitation such as an indirect tax, or excise, in the constitutional law sense or a tax which is known in the simple term is called an excise in the language of the statute which is imposing that tax. The excise according to the statutory law sense is sometimes also known as the miscellaneous excise. There is no such concrete rule that an excise under the previous definition is going to be necessarily same as that of the definition of excise under the later definition of excise tax.
While you will be filing excise tax in the Indian context, then you are required to follow certain steps. For your benefit here we are providing you with information about all the steps:
  • You must apply first of all to the participate in electronic filing by using letter/s of application. Then fill-in letters of application which are available for Terminal Operator/Carriers and Transmitters.
  • Electronic Filing or Electronic Data Interchange over the Internet will be done accordingly
  • A test cycle will be employed to test for the purpose of exchanging the files between the electronic filer and the IRS prior to submitting production files. All these tests will amke sure that the successful submission of qualifying electronic Form720-TO, and Form 720-CS information returns is done.
  • At last you have to submit the form 720-TS and/or 720-CS in the paper format