Open AccessUnion Excise Duties: Evolution and Present Structure
Author(s) -
Niti Bhasin
Publication year - 2014
Publication title -
vision : journal of indian taxation
Language(s) - English
Resource type - Journals
eISSN - 2395-2571
pISSN - 2347-4475
DOI - 10.17492/vision.v1i2.2425
Subject(s) - excise , duty , revenue , government (linguistics) , tax revenue , business , public economics , economics , government revenue , economic policy , international trade , political science , law , finance , macroeconomics , linguistics , philosophy
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.