Till 28 Feb 2015
We know that Excise Rates are mentioned in CETA(Central Excise Tariff Act)
However, general rate of excise was 12%+ 2% Primary Education cess + 1% Secondary Education Cess
View answer
Excise duty is computed as follows
|
Particulars |
Amount |
|
Sales Price(Assessable Value) |
100000 |
|
Add |
|
|
Excise 12% |
12000 |
|
(12% on Assessable Value) |
|
|
Add |
|
|
Primary Education Cess 2% |
240 |
|
(2% on Excise) |
|
|
Add |
|
|
Secondary Education Cess 1% |
120 |
|
(1% on Excise) |
|
|
TOTAL |
112360 |
Effective Rate of Excise=(12000+240+120)/100000=12360/100000=12.36%
From 1.3.2015
General rate was changed to 12.5%
Education Cess and Secondary Cess were exempted
View answer
Excise duty is now computed as follows
|
Particulars |
Amount |
|
Sales Price(Assessable Value) |
100000 |
|
Add |
|
|
Excise 12.5% |
12500 |
|
TOTAL |
112500 |