Professional Documents
Culture Documents
Direct and Indirect Taxes
Direct and Indirect Taxes
4. Duties
Under
5. Specified
6. Duty based on the production capacity
Other
Acts
Duty
Exemptions
As under the customs regime, excise law also provides for exemptions both
general, as well as some specific exemptions which apply to only specified
classes of goods or manufacturers. Some broad categories of general exemptions
include:
Exemption for the small scale sector a threshold exemption from excise duty is
given to units with a turnover of less than 1.5 crore rupees (INR 15 million).
Exemption to intermediate products used for captive consumption -intermediate
products manufactured within the factory are exempt from excise duty, subject to
the
conditions
defined
under
the
respective
notifications.
Job work - exemption is given to a job worker who manufactures excisable goods
from inputs supplied by a principal who undertakes to discharge the excise duty
liability on the final product, subject to the stipulated conditions.
Location based exemption exemption from excise duty is granted to units
operating in specified backward regions of India, for example, many excise
exemptions have been granted to the manufacturing units set up in the North
Eastern States of India.
Offsets
available
for
discharge
of
duty
liability
Since excise duty or CENVAT is a value added tax, a credit of excise duties paid
on indigenous input goods, countervailing duty and additional customs duty
elements of customs duty paid on imported input goods, and service taxes paid on
input services is available for offsetting the excise duty liability of a manufacturer
on the final product.
Similarly, excise duty paid on input goods can be offsetted against the service tax
payable on output services provided using such input goods.
In case of export of goods or services, excise duty paid on input goods used in
production of export goods or provision of services may be claimed as a refund or
may be otherwise adjusted against the other liabilities of the manufacturer or
service provider, as the case may be.