An excise duty is an inland tax on the sale, or production for sale, of specific goods or a tax on a good produced for sale, or sold, within a country or licenses for specific activities. Excise taxes are taxes paid when purchases are made on a specific good, such as gasoline. They are often included in the price of the product. It is an indirect tax on the sale of a particular good or service such as fuel, tobacco, and alcohol.
Excise duty includes:
- A percentage levied on the manufacture, sale, or use of locally produced goods (such as alcoholic drinks or tobacco products).
- A percentage tax levied on a company’s revenue, instead of (like income tax) on the company’s income,
- A fixed tax levied on an activity or occupation, such as the license fee charged by attorneys, doctors, and other professionals. Also called excise tax.
Regulatory Duty is the duty which may be imposed by the Government through notification in the official gazette on all or any of the goods specified in the First Schedule in addition to the General Customs Duty, or at a rate not exceeding 100% of the value of such goods as determined u/s 25.