GK
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Sale of an item
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Production of an item
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Consumption of an item
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All of above
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Detailed explanation-1: -An excise or excise tax (sometimes called an excise duty) is a type of tax charged on goods produced within the country (as opposed to customs duties, charged on goods from outside the country). It is a tax on the production or sale of a good. This tax is now known as the Central Value Added Tax (CENVAT).
Detailed explanation-2: -Tax base: Excise duty is levied on the manufacture of products, while GST is charged at every stage of the supply chain, from manufacture till the sale of the products. Point of taxation: Excise duty is charged at the time of the removal of products, while GST is charged at the time of supply of products and services.
Detailed explanation-3: -Excise duty on the production of goods is inversly proportional to the square to the no . Of goods producted . A company produce some goods and pay tax in the form of excise duty .