| # Overview of excise This functionality is specific for India. Excise duty is an event tax, levied on movable and marketable goods manufactured or produced in India. The goods on which excise duty can be levied are listed in the Central Excise tariff Act (CETA). The manufacturer or dealer registered with excise authorities is liable to pay the excise duty at the time of removal of an excisable item from the warehouse. Types of excise duty The following types of excise duty can be levied on an item: Basic Excise Duty (BED) The basic duty levied under the Central Excise Act. Also called CENVAT. Special Excise Duty (SED) The duty levied in addition to the basic excise duty in special circumstances to protect other industries. Additional Excise Duty (AED) The duty levied on goods of special importance. CESS The cess levied on the excisable item. Education cess on excise The cess levied on aggregate of all excise duties and used for educational purposes. Secondary and Higher Education cess on excise The cess levied on aggregate of all excise duties to raise revenue for the purpose of secondary and higher education. National Calamity and Contingency Duty The duty levied on the excisable item to raise funds that can be used in situations of national calamity. Additional Excise Duty for Textiles and Textile Articles The additional duty levied on textiles and textile articles. For each type of excise duty, you must define a tax code and select the type of excise duty in the Indirect Tax field of the Tax Codes by Country (tcmcs0136s000) session. Important! To use aggregate tax code in your excisable transactions, create an aggregate tax code with all the excise related taxes in the Aggregate Taxes (tctax9141m00l) session. Valuation methods for excise duty The excise duty is calculated at a pre-defined rate on the assessable value of an item. Excise duty can be paid using the following valuation methods: Tariff value The value fixed by the government for specific products. Duty is paid as percentage of tariff value. MRP based duty The duty is calculated on the maximum of retail sales price of an item. MRP based duty is applicable for goods under the provision of Standard of Weights and Measures Act and which are notified by the government. Related topics Example: Excise duty |