Question 1. What Is The Difference Between Sales Tax/vat Andexcise Duty Tax?
The largest difference between VAT/income tax and excise responsibility is that the prior to be charged on intake of products, whereas excise is charged at the manufacture and production of products. Excise duties also are chargeable on a narrower range of products, in comparison to VAT and income tax.
For instance:excise isn't always chargeable on fossil fuels in contrast to income tax and VAT. The excise quantity is usually money owed for a better percent of the most retail rate of the products.
Question 2. What Are The Different Types Of Excise Registration?
Types of Excise Registration are-
Single Premises Single Registration is needed in case of one premises.
More than Single Premises If the individual has a couple of premises requiring registration, separate registration certificate shall be obtained for each of such premises.
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Question three. What Is The Taxable Event In Central Excise?
Manufacture or manufacturing of excisable goods in India is taxable occasion. Central excise responsibility is rate on manufactured items & now not on sale of goods meaning despite the fact that goods aren't bought, excise responsibility have to be payable on it. Captive consumption, loose pattern, middleman items etc. Also are liable to significant excise duty even from these goods no sales is generate. An ownership criterion is beside the point in paying excise responsibility. Case Duty is payable on the time of Goods are manufactured.
Question 4. What Is Central Board Of Excise And Customs (cbec)?
Established in 1855, via George Robinson, the British Governor General of India at the time, Central Board of Excise and Customs changed into intended to manage and manipulate customs legal guidelines in the u . S . A . In addition to the gathering of import duties and land sales. It is said to be one of the oldest authorities departments of India.
The Central Board of Excise and Customs (CBEC) is capabilities underneath the the Union Ministry of Finance?S Department of Revenue. The responsibility for administering the laws .
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Question 5. Which Goods Are Excisable Goods?
The term 'Excisable Goods' way the goods which can be targeted within the first time table and the second one time table to the Central Excise Tariff Act, 1985, as being difficulty to a responsibility of excise and consists of salt.
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Question 6. Who Is Liable To Pay The Excise Tax?
The liability to pay tax excise obligation is always at the manufacturer or manufacturer of goods.
There are 3 varieties of parties who can be taken into consideration as manufacturers-
Those who for my part manufacture the products in question
Those who get the goods manufactured via employing hired labour
Those who get the products manufactured via other events.
Question 7. What Are The Documents & Process Required For Excise Registration?
Documents Required for Excise Registration:
Filled Form A-1 (2 Copies)
Constitution of Applicant
Ground Plan for Factory Premises
Detail of Manufacturing Process
Tariff Classification Code
Board Resolution(In Case of Company)
Excise Registration Procedure:
Step 1 :Excise Registration Application to AC/DC [FormA-1(2 copies) and PAN No.]
Step 2: AC/DC will supply Excise Registration Certificate after receipt of software.
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Question 8. Are Small Scale Industries Liable To Pay Excise Duty Tax?
Considering the importance and for its merchandising small scale industries are exempted from paying of excise duty.
Any Manufacturing unit which has a turnover of much less than 1.5 Cr is exempt from charge of Excise duty.
Question 9. What Is The Purpose Of Excise Duty?
There is a necessity of taxes in any usa but it's miles critical to realize what the Government does with that cash. Taxes are levied to make certain the smooth strolling of the general public offerings in India. Excise obligation is part of it.
It makes certain that the manufacturing area is regarding themselves in the taxation to cowl all aspects. Taxes also can be a tool to control the sale of an amazing, particularly narcotic materials and alcohol. The growth in tax amount of such merchandise might also have sooner or later.
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Question 10. What Is Classification System Used In Excise Tax?
The excisable items are classified by using using 8-Digit device. Description with 8 digits is named as Tariff item.
A Tariff item beneath eight digit device would be interpreted as follows:
First Two Digits (33) Refers to chapter No.
Subsequent Two digits (33 05) Refers to tariff Heading
Subsequent Two digits (33 05 90) Refers to sub heading inside a heading.
Last Two digits (3305 90 forty) Refers to tariff Item.
Example:Tariff Entry 3305 90.
Question 11. What Are Goods For The Purpose Of Excise Tax?
Goods mean a piece of writing or substance that's produced in India.
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Question 12. Is It Mandatory To Pay Duty On All Goods Manufactured?
Yes, it's far obligatory to pay duty on all items manufactured, except exempted. For instance, responsibility isn't payable on the goods exported out of India. Similarly exemption from charge of obligation is available, based totally on situations which include kind of raw substances used, value of turnover (clearances) in a economic yr, kind of manner hired and so forth.
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Question thirteen. What Is The Difference Between Customs Duty Tax And Excise Duty Tax?
If you check both of those taxes at first, each are taxes levied via the government of India however the most big difference among the 2 is that customs obligation is a tax levied upon goods imported into the u . S . From overseas international locations while excise responsibility is levied through the authorities on the products synthetic within the us of a. It is vital to be aware that many provisions are not unusual to both customs and excise obligation. Also, both taxes have similar processes of administration, tribunal.
Question 14. When Excise Duty Tax Is Chargeable?
Excise is an occasion primarily based taxes, and taxes is charged once items are go out from gate of producing plant. The invoice is made on gate pass foundation.
Question 15. What Are The Products On Which Excise Duty Is Applicable?
Besides narcotics and alcohol, accumulated with the aid of the corresponding nation Government, the Central Government expenses excise obligation on the subsequent products:
Live Animals and Animal Products
This consists of stay animals, meat and suitable for eating meat offal, Fish and Crustaceans, Molluscs and other Aquatic Invertebrates, Birds' Eggs, Natural Honey; Edible Products of Animal Origin, not some place else designated or covered, Products of Animal Origin, not someplace else distinct or covered.
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Question sixteen. What Are The Types Of Excise Duty?
There are three different styles of critical excise responsibilities which exist in India which are as follows:
Basic - Excise Duty, imposed underneath section 3 of the 'Central Excises and Salt Act' of 1944 on all excisable items apart from salt produced or synthetic in India, at the rates set forth inside the agenda to the Central Excise tariff Act, 1985, falls underneath the category of fundamental excise responsibility in India.
Additional - Section three of the 'Additional Duties of Excise Act.
Question 17. What Are The Acts And Rules For The Collection Of Excise Duty Tax?
Under the authority of the Central Excise Act, 1944, the taxes are levied on production or production of products. The charges for the taxes are unique under the Central Excise Tariff Act, 1985. This obligation is chargeable on certain fabric merchandise such as yarn, fiber, and so forth. Additionally except for the Additional Excise Duty beneath Additional Duties of Excise (Textiles and Textile Articles) Act, 1975, which might be additionally charged.. The Additional Duties of Excise (Goods of Special Importance) Act, 1957 and Miscel.
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Question 18. What Is The Compliance Mandatory Under Excise Duty Tax?
All the compliance can be divided in two steps:
Payment of Taxes
Filing of Return on tenth of next month.
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Question 19. How Do You Evaluate Excisable Goods?
It is accomplished inside the foundation any person of the two two provisions enshrined inside the Central Excise regulation in India. These provisions are Valuation below section four of the Central Excise Act, 1944 and the Central Excise Tariff Act, 1985, The in advance act is based totally on everyday fee wherein most retail rate isn't to the Central Government or wherein Tariff values have now not been constant for the articles. Under segment three(2) of the Central Excise Tariff Act, 1985 the valuation is in reality primarily based on maximum retail price (MRP).
Question 20. What Is Excise Duty Tax In India?
Central Excise duty is an indirect tax levied on those items which can be synthetic in India and are meant for home consumption. The taxable occasion is 'manufacture' and the legal responsibility of relevant excise responsibility arises as quickly as the goods are manufactured.
This tax is levied on positive goods for their production or sale catering or on licenses on unique offerings and activities. Excise duty is an inland tax unlike custom duties is an inland tax. Also this obligation costs are a shape of india.
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Question 21. What Is The Consequence Of Evading Payment Of Excise Duty?
Under the distinctive sections of the crucial excise act, the fines for evading tax can range from twenty-5 to fifty according to cent of the amount of responsibility kept away from. When you study the quantity of excise you can must pay, this is a instead massive quantity and along with the monetary repercussions, you furthermore mght ought to come upon a tarnished picture.