Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

<keyword id="6356916" type="UNKNOWN" weightage="20" keywordseo="excise-duty">Excise duty</keyword> can be explained as a kind of <keyword id="6354678" type="DEFINITION" weightage="20" keywordseo="Indirect-Tax">indirect tax</keyword>. Excise duty refers to the tax amount that gets included in the selling price. The other name of excise duty is excise tax. The consumer has to pay the excise duty or excise tax while making a purchase. Retailers need to calculate the excise duty from time to time and must ensure the timely payment of the same. Excise duty in the Indian context Excise duty is levied on the goods that are manufactured within India as against the custom duty which is levied on the goods that are imported from outside the country. The introduction of GST in India has made some significant changes to how excise duty works in the country. GST has subsumed a majority of indirect taxes like excise duty. This will mean that after the GST was introduced, excise duty has almost ceased to exist in the country. However, excise duty is still applicable in case of products like petroleum and liquor. Here we discuss how the concept of excise duty worked in India before the introduction of GST. The indirect tax of excise duty is generally collected by the retail seller from the customers and paid to the government. This duty is payable on the manufacture of goods. It is payable at the time of taking delivery of the goods from the place of production or from the warehouse for the purpose of selling. Since the excise duty is levied on the manufacturing of the said goods, there is no need to actually sell them to be able to recover the excise duty. The authority for the collection of excise duty in India is the Central Board of Excise and Customs (CBEC). Types of excise duty in India Traditionally speaking in India before the advent of GST, there had been three kinds of excise duty as given under. A revised understanding of the excise duty is called for after the GST took effect. Basic Excise Duty Basic excise duty is also referred to as Central Value Added Tax (CENVAT). This category of excise duty is levied on goods that are classified under the first schedule of the Central Excise Tariff Act, 1985. This duty is levied under Section 3 (1) (a) of the Central Excise Act, 1944. This excise duty is applicable for all goods excepting salt. Additional Excise Duty Section 3 of the Additional Duties of Excise also known as the goods of high importance, coming under Act 1957 levies excise duty on goods that are listed under schedule 1 of the given act. This duty is levied on some special category of goods. The central and state government charge these taxes in lieu of the sales tax. Enacted in 1978, the Act of Additional Duties of Excise (Textiles and Textile Articles) also creates room for a similar kind of legislation. Special Excise Duty This type of excise duty is levied on special goods that are classified under the Second schedule to the Central Excise Tariff Act, 1985.

What is Excise Duty and How it is calculated

The <keyword id="66" type="General" weightage="20" keywordseo="delhi" source="Orion">Delhi</keyword> government's <keyword id="45077" type="General" weightage="20" keywordseo="excise" source="Orion">excise</keyword> department is devising ways to dispose 70 lakh bottles of leftover <keyword id="6356212" type="General" weightage="20" keywordseo="liquor" source="Orion">liquor</keyword> and to roll them over for sale under the current excise regime, officials said on Wednesday. The stock, also comprising wine and beer, is stored at warehouses as it could not be sold under <keyword id="570373" type="General" weightage="20" keywordseo="excise-policy" source="Orion">Excise Policy</keyword> 2021-22 that finally ended on August 31, they said. "There are over 35 lakh bottles of various spirit brands are registered under the current excise policy. Such brands can be sold through corporation vends," a senior government officer said. The remaining stock belongs to brands that are yet to be registered under the prevailing excise policy. "It is being explored how to dispose this stock of unregistered brands. One option is to register the brands concerned and sell them through the liquor vends. Another option is to destroy them," the officer said. Officials, however, said the government may allow sale of the unregistered brand bottles instead of destroying them. They cited an example from 2019 wherein the excise department had prepared a proposal seeking permission to sell liquor bottles seized during raids at 25 per cent less than their actual price, after proper testing, instead of destroying them. The Excise Policy 2021-22 that came into being from November 17, 2021, was withdrawn by the Delhi government following recommendation of a CBI probe into alleged irregularities in its implementation. The government then reverted to the excise policy that was in operation before November 17, 2021, by running liquor vends through its four undertakings- DTTDC, DSIIDC, <keyword id="1603215" type="General" weightage="80" keywordseo="dscsc" source="Orion">DSCSC</keyword> and DCCWS- from September 1 this year. Officials said 518 licenses have been issued for liquor vends to the four corporations so far. A total of 406 vends have opened and 400 of them have started placing purchase orders for stock. The excise department has also registered nearly 650 brands of liquor. Officials said the left over stock could be sold at prices consistent with the current excise policy. A part of the stock comprises beer bottles of unregistered brands, that will be needed to be disposed soon as they can not be stored for long without proper refrigeration facilities, the officials added. SEE ALSO : <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/space/news/robots-and-humans-are-gearing-up-to-explore-space-with-isros-gaganyaan/articleshow/94216760.cms">Robots and humans are gearing up to explore space with ISRO's Gaganyaan</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/rupee-rises-5-paise-to-79-47-against-us-dollar-in-early-trade/articleshow/94216323.cms">Rupee rises 5 paise to 79.47 against US dollar in early trade</a>

Delhi is looking to roll over 70 lakh unsold liquor bottles to the current excise regime

<ul><li><keyword id="45077" type="COMPANY" weightage="20" keywordseo="excise">Excise</keyword> duty on <keyword id="6367091" type="UNKNOWN" weightage="20" keywordseo="petrol">petrol</keyword> and <keyword id="6356109" type="UNKNOWN" weightage="20" keywordseo="diesel">diesel</keyword> was on Saturday hiked by ₹3 per litre</li><li>Special excise duty on petrol was hiked by ₹2 to ₹8 per litre incase of petrol and to Rs 4 incase of diesel, an official notification said.</li></ul>Excise duty on petrol and diesel was on Saturday hiked by ₹3 per litre as the government looked to mop up gains arising from fall in international <keyword id="6359072" type="UNKNOWN" weightage="20" keywordseo="oil">oil</keyword> prices.Special excise duty on petrol was hiked by Rs 2 to Rs 8 per litre incase of petrol and to Rs 4 incase of diesel, an official notification said. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Elements </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Petrol(₹/Litre) </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Diesel(₹/Litre) </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;"> </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;"> </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Base Price </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">28.18 </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">31.74 </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Freight Etc. </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">0.32 </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">0.29 </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Price charged to dealers </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">28.5 </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">32.03 </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Additional Excise duty </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">22.98 </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">18.83 </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Additional Dealer commission </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">3.54 </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">2.49 </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Additional VAT (including VAT on dealer commission) </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">14.85 </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">9.23 </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Retail Selling Price </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">69.87 </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">62.58 </td></tr></tbody></table>*Price Breakup in Delhi as of March 14 2020 Additionally, road cess on petrol was raised by Rs 1 per litre each on petrol and diesel to ₹10. The increase in excise duty would in normal course result in a hike in petrol and diesel prices but most of it would be adjusted against the fall in rates that would have necessitated because of slump in international oil prices. ANZ KJ

Breakup of Petrol and Diesel prices after Indian government raise excise duty by ₹3 per litre

The <a href="http://www.businessinsider.in/searchresult.cms?query=Society+of+Indian+Automobile+Manufacturers">Society of Indian Automobile Manufacturers</a> (<keyword id="108827" type="CITY" weightage="60" keywordseo="SIAM">SIAM</keyword>) wants lower <a href="http://www.businessinsider.in/searchresult.cms?query=excise+duty">excise duty</a> on large cars and <a href="http://www.businessinsider.in/searchresult.cms?query=SUV">SUV</a>s. It wants the government to lower the rates from the current 30% to 20% in <a href="http://www.businessinsider.in/searchresult.cms?query=Budget+2016">Budget 2016</a>.This demand for <a href="http://www.businessinsider.in/searchresult.cms?query=excise+duty">excise duty</a> cut is among the top proposals <a href="http://www.businessinsider.in/searchresult.cms?query=Society+of+Indian+Automobile+Manufacturers">SIAM</a> has put forth. 
 
Explaining why they’re asking for these measures <a href="http://www.businessinsider.in/searchresult.cms?query=Society+of+Indian+Automobile+Manufacturers">SIAM</a> Director General Vishnu Mathur told PTI, "From 12.5 to 30 per cent, the differential in <a href="http://www.businessinsider.in/searchresult.cms?query=excise+duty">excise duty</a> has grown over the years. We are asking for two rates - one for small cars and one for large vehicles." 
 
As of now, sub four meters <a href="http://www.businessinsider.in/searchresult.cms?query=passenger+cars">passenger cars</a> have <a href="http://www.businessinsider.in/searchresult.cms?query=excise+duty">excise duty</a> of 12.5%. Cars over four meters but with engine less than 1,500 cc capacity attract 24% duty. 1,500 cc cars are charged <keyword id="6356916" type="UNKNOWN" weightage="80" keywordseo="excise-duty">excise duty</keyword> of 27% and those with ground clearance of more than 170 mm attract an excise duty of 30%. 
 
It has also asked the Modi government to offer an incentive for scrapping old vehicles. Their scrapping incentive is aimed to help reduce air pollution. 
 
"We want this vehicle scrapping scheme to be incentive based and not a mandatory one. Even if 15-20 per cent old vehicles go off the road, it will make a huge difference. Besides, the scheme would be revenue positive for the government," Mr Mathur said. 
 
The government will present <a href="http://www.businessinsider.in/searchresult.cms?query=Budget+2016">Budget 2016</a> on February 29th. 
 
Image credit: Indiatimes

SIAM wants Excise Duty on Large Cars
and SUVs slashed

Automobile manufacturers recently met <keyword id="2343915" type="UNKNOWN" weightage="100" keywordseo="Commerce-Minister-Nirmala-Sitharaman">Commerce Minister Nirmala Sitharaman</keyword> to convince her to extend the validity of excise duty cuts on cars, two-wheelers and commercial vehicles beyond June 20. 
 
The industry has also sought reduction in excise duties on large cars and lowering of duty slabs for the sector to boost domestic demand. 
 The minister, in a meeting with the industry chambers last week, had questioned the need for budgetary concessions for the <keyword id="20077" type="UNKNOWN" weightage="100" keywordseo="automobile-industry">automobile industry</keyword>. However, in Monday’s meeting, the members of the <keyword id="2343914" type="UNKNOWN" weightage="100" keywordseo="Society-for-Indian-Automobiles-Manufacturers">Society for Indian Automobiles Manufacturers</keyword> (<keyword id="108827" type="CITY" weightage="100" keywordseo="SIAM">SIAM</keyword>) had more opportunity to justify their demands. The meeting specifically focused on the automobile industry. 
 
The industry also talked about falling sales of automobiles and the need to motivate the sector to spur manufacturing. This, in return, will increase employment, an official added. Domestic sales of passenger vehicles in 2013-14 were 6% lower than the previous year while exports remained flat. 
 
“Discussed issues facing automobile industry with representatives of SIAM,” Sitharaman tweeted after her meeting without revealing the government’s stand. 
 While <keyword id="2261762" type="UNKNOWN" weightage="100" keywordseo="Modi-led-BJP-government">Modi-led BJP government</keyword> may consider retaining lower excise slabs, a further reduction in excise looks difficult due to the existing budgetary constraints, the official said. 
 In the interim Budget announced in the middle of February by the then Finance Minister <keyword id="43940" type="PERSON" weightage="100" keywordseo="P-Chidambaram">P Chidambaram</keyword>, excise duties on small cars, scooters, motorcycles and commercial vehicles were brought down to 8% from 12%. Duty cuts were also made for larger cars and <keyword id="60427" type="ENTERTAINMENT" weightage="100" keywordseo="SUVs">SUVs</keyword> from 30% to 24% and for mid-size cars from 24% to 20%. 
 
In a letter to the revenue secretary last month, SIAM had sought further lowering of duties on large cars to 20% from 24%. It also urged top-level bureaucrats to simplify the excise duty slabs on cars by moving to a two-tier system from a three-tier system. 
 
Earlier, the automobile industry had a five-tier duty structure. It was later reduced to a three-tier structure in the interim Budget, ranging between 8% and 24%. 
 
The industry contributes 25% to the manufacturing GDP and comprises 18% of the total excise collection while employing 19.5 million people, revealed SIAM.

Auto-makers Urge Commerce Ministry To Extend
Validity Of Excise Duty Cut

<keyword id="6356916" type="UNKNOWN" weightage="100" keywordseo="excise-duty">Excise duty</keyword> on branded and unbranded <keyword id="6367091" type="ORGANIZATION" weightage="60" keywordseo="Petrol">petrol</keyword> and <keyword id="6356109" type="COMPANY" weightage="60" keywordseo="diesel">diesel</keyword> has been increased by Rs 2 per litre. "Govt has decided to increase basic excise duty on petrol &amp; diesel by Rs 2/litre for infrastructure development, especially building15000 km of road," Oil Minister <keyword id="197418" type="PERSON" weightage="100" keywordseo="Dharmendra-Pradhan">Dharmendra Pradhan</keyword> tweeted. The increase in rates will come into effect from midnight. 
 
"However, retail price of petrol &amp; diesel will remain unchanged all over India despite additional excise duty of Rs 2/litre from midnight today," the oil minister said in another tweet. 
 
A fortnightly revision of petrol and diesel prices, which was due, will not happen now due to this increase. A reduction in prices was likely to happen because of fall in crude oil prices globally. 
 
On December 2 last year, the government had increased excise duty on petrol by Rs 2.25 per litre and on diesel by Re 1 per litre. 
 
The unprecedented decline in crude oil prices has come as a blessing for the Narendra Modi government and it is helping the government increase its revenue from the fuel sale. In the past, heavy subsidies on fuel used to be a burden on the government.

Excise Duty On Petrol And Diesel Increased By Rs
2/Litre

If reports are to be believed, the government might raise the <a href="http://www.businessinsider.in/searchresult.cms?query=excise+duty">excise duty</a> on petrol and diesel before the budget. This could be done to raise revenue and stick to the fiscal deficit target it had set for 2015-16. 
 
"Falling crude oil price provide us a headroom for increasing <a href="http://www.businessinsider.in/searchresult.cms?query=excise+duty">excise duty</a> on petrol and diesel. It will help in meeting <a href="http://www.businessinsider.in/searchresult.cms?query=fiscal+deficit">fiscal deficit</a> target of 3.9% for the current fiscal," an official source told ET. 
 
"The <a href="http://www.businessinsider.in/searchresult.cms?query=fiscal+deficit">fiscal deficit</a> target is sacrosanct and every effort would be made to meet the target," he quoted. 
 In the current fiscal year, the government has already raised the <keyword id="6356916" type="UNKNOWN" weightage="60" keywordseo="excise-duty">excise duty</keyword> on petrol and diesel four times. 
 
Even Last week, the government had hiked the excise duty on petrol by Rs 0.75 per litre and on diesel by Rs 2 a litre, which was the second increase in duties in less than two weeks. 
 
This has happened despite oil prices having fallen to 12-year low to USD 29 per barrel because of weak Chinese economy and a global slowdown and lifting of Iran sanctions. 
 
According to the official data, fiscal deficit position has shown a remarkable improvement at the end of November 2015. 
 
Image credit: Indiatimes

Excise Duty on Petrol and Diesel might rise before Budget

The cash-strapped government will gain close to Rs 1.6 lakh crore in additional revenues this fiscal from a record increase in excise duty on <keyword id="6367091" type="UNKNOWN" weightage="20" keywordseo="petrol">petrol</keyword> and <keyword id="6356109" type="UNKNOWN" weightage="20" keywordseo="diesel">diesel</keyword>, that will help make up for revenue it lost in a slowing economy and shutting down of businesses due to <keyword id="1754604" type="PERSON" weightage="20" keywordseo="coronavirus">coronavirus</keyword> lockdown. Late on Tuesday evening, the government hiked excise duty on petrol by Rs 10 per litre and that on diesel by Rs 13 a litre to mop up gains arising from international oil prices falling to a two-decade low. <div type="Article" hostid="261" msid="75563385" title="The excise duty on petrol rises by ₹10 and on diesel by ₹13 starting May 6" mstype="2" mssubtype="0"></div> This is the second hike in excise duty in less than two months and will help government garner over Rs 1.7 lakh crore in additional revenues annually at 2019-20 level of consumption, industry officials said. Considering the slump in consumption due to travel restrictions imposed by coronavirus lockdown, the gains in the remaining 11 months of the current fiscal year (April 2020 to March 2021) will be close to Rs 1.6 lakh crore, they said. Together with Rs 39,000 crore in annual revenues gained from the March 14 excise duty hike of Rs 3 per litre each on petrol and diesel, the government stands to gain as much as Rs 2 lakh crore. State-owned fuel retailing companies, <keyword id="59622" type="DOMAIN" weightage="20" keywordseo="Indian-Oil-Corp">Indian Oil Corp</keyword> (IOC), <keyword id="170673" type="COMPANY" weightage="20" keywordseo="Bharat-Petroleum-Corp-Ltd">Bharat Petroleum Corp Ltd</keyword> (BPCL) and <keyword id="6374014" type="COMPANY" weightage="20" keywordseo="hindustan-petroleum">Hindustan Petroleum</keyword> Corp Ltd (HPCL) had frozen petrol and diesel prices since March 16, as if anticipating the government move and will now set off gains they accrued from continuing drop in international oil prices against the excise duty hike. Officials said normally retail prices would have changed with any revision in taxes but like March 14, there is no change as the excise duty hike is being adjusted against the gains consumers should have got from Brent crude oil dipping to about USD 18 per barrel - the lowest since 1999. Commenting on the excise duty hike, Vikas Halan, Senior Vice President, Corporate Finance, Moody's Investors Service, said: "Government of India's increase in petrol and diesel taxes by USD 21/barrel and USD 27/ barrel respectively will result in government's tax collection increasing by about USD 21 billion, if the tax hike is maintained for full year. "This reinforces the importance of oil marketing companies to the government of India and validates the support incorporated in our credit assessment of these companies. The tax hike could result in higher working capital outflow for the oil marketing companies, which will partly offset the working capital savings from lower inventory costs." According to a notification issued by the Central Board of Indirect Taxes and Customs, special additional excise duty on petrol has been hiked by Rs 2 per litre and road cess has been hiked by Rs 8 a litre. In case of diesel, special additional excise duty has been hiked by Rs 5 per litre and road cess has been raised by Rs 8 a litre. With this, the total incidence of excise duty on petrol has risen to Rs 32.98 per litre and that on diesel to Rs 31.83. Petrol costs Rs 71.26 a litre in Delhi and a litre of diesel comes for Rs 69.39. Central excise duty makes up for 46 per cent of petrol and diesel price now. After considering local sales tax or VAT, the total tax incidence in the price is as high as 60 per cent. The excise tax on petrol was Rs 9.48 per litre when the Modi government took office in 2014 and that on diesel was Rs 3.56 a litre. The government had between November 2014 and January 2016 raised excise duty on petrol and diesel on nine occasions to take away gains arising from plummeting global oil prices. In all, duty on petrol rate was hiked by Rs 11.77 per litre and that on diesel by 13.47 a litre in those 15 months that helped government's excise mop up more than double to Rs 2,42,000 crore in 2016-17 from Rs 99,000 crore in 2014-15. It cut excise duty by Rs 2 in October 2017 and by Rs 1.50 a year later. But it raised excise duty by Rs 2 per litre in July 2019. It again raised excise duty on March 14 by Rs 3 per litre. In preparation for the excise duty hike, Finance Minister Nirmala Sitharaman had at the fag end of the Budget session of Parliament took the authorisation to raise excise duty on petrol and diesel by Rs 8 per litre each in future. Sitharaman through an amendment to the Finance Bill, 2020 raised the limit up to which the government can raise special excise duty on petrol and diesel to Rs 18 per litre and Rs 12 per litre, respectively. The March 14 excise duty hike included Rs 2 a litre increase in special additional excise duty and Re 1 in road and infrastructure cess. This hike took the special additional excise duty to maximum permissible limit in law - Rs 10 in case of petrol and Rs 4 in case of diesel. This, through an amendment to the Eighth Schedule of the Finance Act, was increased to Rs 18 per litre in case of petrol and Rs 12 in case of diesel. Government sources said the Centre has taken this step of increasing duty to raise some revenue in view of a tight fiscal situation. This would help in generating the resources to meet expense of coronavirus fight as well as meet other spending needs such as on infrastructure. <div type="Article" hostid="261" msid="75569073" title="Fear and loathing in shopping malls⁠ — the owners call for help in the fight for survival from the coronavirus crash" mstype="2" mssubtype="0"></div>

India to gain ₹1.6 lakh crore this fiscal from record excise duty hike on petrol, diesel

(Eds: Adding analyst comments) New Delhi, May 6 () The Union government will gain close to Rs 1.6 lakh crore in additional revenues this fiscal from a record hike in excise duty on petrol and diesel that has pushed total incidence of taxation on auto fuels to 70 per cent of the price.Late on Tuesday evening, the government hiked excise duty on petrol by Rs 10 per litre and that on diesel by Rs 13 a litre to mop up gains arising from international oil prices falling to a two-decade low.Petrol price remained unchanged at Rs 71.26 a litre and diesel at Rs 69.39 as state-owned oil firms set off the excise duty hike against gains they accrued from fall in international oil rates.This is the second hike in excise duty in less than two months and will help the government garner over Rs 1.7 lakh crore in additional revenues annually at 2019-20 level of consumption, industry officials said.Considering the slump in consumption due to travel restrictions imposed by coronavirus lockdown, the gains in the remaining 11 months of the current fiscal year (April 2020 to March 2021) will be close to Rs 1.6 lakh crore, they said.Together with Rs 39,000 crore in annual revenues gained from the March 14 excise duty hike of Rs 3 per litre each on petrol and diesel, the government stands to gain as much as Rs 2 lakh crore.After the excise duty hike, taxes - both central excise and state VAT) - make up for 70 per cent of the price of petrol and diesel. A litre of petrol costs only Rs 18.28 per litre in Delhi but after including excise duty (Rs 32.98), dealer commission (Rs 3.56) and VAT (Rs 16.44) the price for consumer comes to Rs 71.26 a litre.Similarly, a litre of diesel costs only Rs 18.78 but after including excise duty (Rs 31.83), dealer commission (Rs 2.52) and VAT (Rs 16.26), it is priced at Rs 69.39 for consumers.State-owned fuel retailing companies, Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) had frozen petrol and diesel prices since March 16, anticipating the government move and will now set off gains they accrued from the continuing drop in international oil prices against the excise duty hike.ICICI Securities said the excise duty hike would mean a plunge in gross auto fuel marketing margin by 64 per cent (Rs 12.1 a litre) from Rs 19 on May 5 to Rs 6.9 on May 6.Emkay Global said oil marketing companies (OMC) have continued to pass on numerous VAT rate hikes implemented on petrol and diesel by states, but as gross margins touched a high of over Rs 18/20 on Tuesday, the excise hikes are most likely to be absorbed."The overall price freeze has now crossed 45 days. OMC officials have stated unrealistic global prices to be the reason behind this, but looking at the 60 per cent estimated drop in auto-fuel consumption, the 6-7x jump in marketing margin from normative rate implies more than making up for the volume hit," it said.Officials said normally retail prices would have changed with any revision in taxes but like March 14, there is no change as the excise duty hike is being adjusted against the gains consumers should have got from Brent crude oil dipping to about USD 18 per barrel - the lowest since 1999.Commenting on the excise duty hike, Vikas Halan, Senior Vice President, Corporate Finance, Moody's Investors Service, said: "Government of India's increase in petrol and diesel taxes by USD 21/barrel and USD 27/ barrel respectively will result in government's tax collection increasing by about USD 21 billion if the tax hike is maintained for the full year."This reinforces the importance of oil marketing companies to the government of India and validates the support incorporated in our credit assessment of these companies. The tax hike could result in higher working capital outflow for the oil marketing companies, which will partly offset the working capital savings from lower inventory costs."According to a notification issued by the Central Board of Indirect Taxes and Customs, special additional excise duty on petrol has been hiked by Rs 2 per litre and road cess has been hiked by Rs 8 a litre. In case of diesel, special additional excise duty has been hiked by Rs 5 per litre and road cess has been raised by Rs 8 a litre.With this, the total incidence of excise duty on petrol has risen to Rs 32.98 per litre and that on diesel to Rs 31.83.Petrol costs Rs 71.26 a litre in Delhi and a litre of diesel comes for Rs 69.39.Central excise duty makes up for 46 per cent of petrol and diesel price now. After considering local sales tax or VAT, the total tax incidence in the price is as high as 60 per cent.The excise tax on petrol was Rs 9.48 per litre when the Narendra Modi government took office in 2014 and that on diesel was Rs 3.56 a litre.The government had between November 2014 and January 2016 raised excise duty on petrol and diesel on nine occasions to take away gains arising from plummeting global oil prices.In all, duty on petrol was hiked by Rs 11.77 per litre and that on diesel by 13.47 a litre in those 15 months that helped government's excise mop up more than double to Rs 2,42,000 crore in 2016-17 from Rs 99,000 crore in 2014-15.It cut excise duty by Rs 2 in October 2017 and by Rs 1.50 a year later. But, it raised excise duty by Rs 2 per litre in July 2019.It again raised excise duty on March 14 by Rs 3 per litre.Government sources said the Centre has taken this step of increasing duty to raise some revenue in view of a tight fiscal situation. This would help in generating the resources to meet the expense of coronavirus fight as well as meet other spending needs such as on infrastructure. ANZ BAL

Central govt to get Rs 1.6 lakh cr from record excise duty hike on petrol, diesel

(Eds: Adds details) New Delhi, May 5 () The government on Tuesday evening hiked excise duty by a record Rs 10 per litre on petrol and Rs 13 per litre on diesel to garner Rs 1.6 lakh crore additional revenue as it repeated its time-tested formula of not passing on gains arising from a slump in international oil prices. Retail prices of petrol and diesel will not be impacted by the tax changes as state-owned oil firms will adjust them against the recent fall in oil prices, industry officials said. According to a notification issued by the Central Board of Indirect Taxes and Customs, special additional excise duty on petrol has been hiked by Rs 2 per litre and road cess has been hiked by Rs 8 a litre. In case of diesel, special additional excise duty has been hiked by Rs 5 per litre and road cess has been raised by Rs 8 a litre. With this, the total incidence of excise duty on petrol has risen to Rs 32.98 per litre and that on diesel to Rs 31.83. The tax on petrol was Rs 9.48 per litre when the Modi government took office in 2014 and that on diesel was Rs 3.56 a litre. This is the second time since March that the government has hiked excise duty to mop up gains arising from fall in international oil prices. It had raised excise duty on petrol and diesel by Rs 3 per litre each in March to garner about Rs 39,000 crore. Petrol and diesel prices have not been revised since March 16 despite international oil prices falling to a two-decade low. The gains will now be adjusted against the excise duty hike. Petrol costs Rs 71.26 a litre in Delhi and a litre of diesel comes for Rs 69.39. The government had between November 2014 and January 2016 raised excise duty on petrol and diesel on nine occasions to take away gains arising from plummeting global oil prices. In all, duty on petrol rate was hiked by Rs 11.77 per litre and that on diesel by 13.47 a litre in those 15 months that helped government's excise mop up more than double to Rs 2,42,000 crore in 2016-17 from Rs 99,000 crore in 2014-15. It cut excise duty by Rs 2 in October 2017 and by Rs 1.50 a year later. But it raised excise duty by Rs 2 per litre in July 2019. Government sources said the Centre has taken this step of increasing duty to raise some revenue in view of a tight fiscal situation. This would help in generating the resources to meet the expense of coronavirus fight. ANZ MRMR

Govt hikes excise duty on petrol by record Rs 10, diesel by Rs 13

New Delhi, Mar 23 () Finance Minister Nirmala Sitharaman on Monday took authorisation to raise excise duty on petrol and diesel by Rs 8 per litre each in future as Parliament passed the Finance Bill, 2020, that also allowed pension funds to be treated like sovereign wealth funds. First, the Lok Sabha passed the Finance Bill, 2020, without a discussion and then the Rajya Sabha returned it without a discussion, all in a matter of few hours. The Rajya Sabha also returned without debate the Appropriation Bill 2020-21, authorising the government to draw over Rs 110 lakh crore from the Consolidated Fund of India for its working as well as the implementation of its programmes and schemes. Last week, the Lok Sabha passed the demands for grants. With this, the Parliament approval of the Budget for 2020-21 has been completed. Among the amendments to the Finance Bill, 2020, that Sitharaman introduced and got the approval of included changes to make NRI-owned business being made liable to pay taxes on income generated by Indian operations only. Also, a 20 per cent TDS rate for the dividend paid to NRI/foreign company was approved. Also, REITS was exempt from dividend tax. The key change in the Finance Bill was an amendment to the law to give the government enabling powers to raise excise duty on petrol and diesel by Rs 8 per litre each in future. Sitharaman moved an amendment to the Finance Bill, 2020, to raise the limit up to which the government can raise special excise duty on petrol and diesel to Rs 18 per litre and Rs 12 per litre, respectively. This was along with other amendments as also the Finance Bill was passed without debate. The government had on March 14 raised excise duty on petrol and diesel by Rs 3 per litre each to raise an additional Rs 39,000 crore in revenue annually. This duty hike included Rs 2 a litre increase in special additional excise duty and Re 1 in road and infrastructure cess. This hike took the special additional excise duty to maximum permissible limit in law -- Rs 10 in case of petrol and Rs 4 in case of diesel. Now, through an amendment to the Eighth Schedule of the Finance Act, this limit has been increased to Rs 18 per litre in case of petrol and Rs 12 in case of diesel. This is an enabling provision and no change in excise duty is being done as of now, an official said. The amendment gives powers to the government to raise the duty by up to Rs 8 per litre in petrol and diesel at any time it wishes. The excise duty hike of March 14 was done to take away gains arising from a slump in international oil prices. According to a notification issued by the Central Board of Indirect Taxes and Customs, special excise duty on petrol was hiked by Rs 2 to Rs 8 per litre in case of petrol and to Rs 4 a litre from Rs 2 in case of diesel. Additionally, road cess was raised by Re 1 per litre each on petrol and diesel to Rs 10. With this, the total incidence of excise duty on petrol has risen to Rs 22.98 per litre and that on diesel to Rs 18.83. The tax on petrol was Rs 9.48 per litre when the Modi government took office in 2014 and that on diesel was Rs 3.56 a litre. The government had between November 2014 and January 2016 raised excise duty on petrol and diesel on nine occasions to take away gains arising from plummeting global oil prices. In all, duty on petrol rate was hiked by Rs 11.77 per litre and that on diesel by 13.47 a litre in those 15 months that helped the government's excise mop-up more than double to Rs 2,42,000 crore in 2016-17 from Rs 99,000 crore in 2014-15. It cut excise duty by Rs 2 in October 2017 and by Rs 1.50 a year later. But, it raised excise duty by Rs 2 per litre in July 2019. ANZ HRS

You Searched For "excise" and got 11 results

What is Excise Duty and How it is calculated

BI India Bureau

Delhi is looking to roll over 70 lakh unsold liquor bottles to the current excise regime

PTI

Breakup of Petrol and Diesel prices after Indian government raise excise duty by ₹3 per litre

PTI

SIAM wants Excise Duty on Large Cars and SUVs slashed

BI India Bureau

Auto-makers Urge Commerce Ministry To Extend Validity Of Excise Duty Cut

BI India Bureau

Excise Duty On Petrol And Diesel Increased By Rs 2/Litre

BI India Bureau

Excise Duty on Petrol and Diesel might rise before Budget

BI India Bureau

India to gain ₹1.6 lakh crore this fiscal from record excise duty hike on petrol, diesel

PTI

Central govt to get Rs 1.6 lakh cr from record excise duty hike on petrol, diesel

PTI

Govt hikes excise duty on petrol by record Rs 10, diesel by Rs 13

PTI

Govt gets nod to raise excise duty on petro, diesel by Rs 8 in future; Parl approves Finance Bill

PTI

Popular Keywords

Buying Guides