Central Excise Duty ?.......

[Deepak Singh]

Dear Officer,

In need a clarification regarding what is centra excise duty and why reason this high % rate in excise duty and also please confirm what is diffrent between other VAT and serices tax

 

Regards

Singh D

AI Summary

Understanding Central Excise Duty: Historical Rates, Current VAT & Service Tax Explained with Section References A user inquired about Central Excise Duty, its high percentage rate, and the differences between VAT and Service Tax. The response explained that Central Excise Duty is a tax on manufacturing goods, originating in 1944. Historically, rates were over 70-80%, now reduced to around 10%. VAT, a consumption tax replacing Sales Tax, is levied on the value addition of goods. Service Tax is imposed on taxable services, with the provider usually responsible for payment. The current Service Tax rate is 10%, with additional Education Cess. The response encouraged further queries for knowledge enrichment.