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.