VISION: Journal of Indian Taxation
Year : 2014, Volume : 1, Issue : 2
First page : ( 61) Last page : ( 84)
Print ISSN : 2347-4475. Online ISSN : 2395-2571.

Union Excise Duties: Evolution and Present Structure

Bhasin Niti

Assistant Professor, Department of Commerce, Delhi School of Economics, University of Delhi

Online published on 6 February, 2018.

Abstract

Excise duties are an important source of indirect tax revenue for the Central Government. This paper looks at the evolution of the excise duty structure in India. The nomenclature, administration and revenue significance of excise duty has been outlined. The paper then looks at the reforms in the excise duty structure by analysing the recommendations of the various Committees constituted in this regard. We also examine the problem of the taxation of inputs and the resulting cascading effect on the prices of final products by looking at the transition from pre-MODVAT arrangements to MODVAT and CENVAT structure. Finally, the paper highlights the problems created by exemptions and concessions and how these concessions are misused. There is a need to understand that if concessions are judiciously used, they can become an effective tool of economic change on desired lines

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Keywords

Excise duty, MODVAT, CENVAT, Exemptions.

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