Central Excise is a Duty on the manufacture or production of all excisable goods in India. The Central Excise Duty is a form of indirect Taxation imposed through Central Excise ACT, 1994. Excise Duty is imposed when the goods are manufactured or produced in India and is payable when the goods are removed from the manufactured premises. Every person who deals or manufacture or deals in excisable good is required to obtain Central Excise Registration as per Rule 9 of the central excise rules, 2002.
Importance of Excise Registration:
There is a necessity of taxes in any country but it is important to know what the Government does with that money. Taxes are imposed (levied) to ensure the smooth running of the public services in India. Excise duty is a part of it.
Taxes can also be a tool to control the sale of a good. The increase in tax amount of products may have eventually lead to reduction of purchase due to infirm affordability.
Taxes in general, help Governments in infrastructure projects such as building roads, railway networks that are used by the public. It also helps to ensure that the defense forces i.e. navy, air force and army are being maintained and the required arms are being funded, so that taxpayer or not, a citizen of India feels safe and secure at home. Other maintenances such as public parks, water treatment and cleanliness in public places are funded by such taxes.
Also, under the Indian law system excise tax, unless exempted under the corresponding acts. If an individual or an organization is caught avoiding excise tax, the idiom could be a fine of 20-50% of duty avoided. It also spoils the organization and the involved individual’s image.
Process of Excise Registration:
The following Documents are to be submitting for obtaining the registration:
- Pan card copy of the company/firm.
- Ground plan of factory (which should also provide description of boundaries of premises to be registered).
- Cancelled Cheque of Bank Account.
- General power of Attorney (in case application is signed by authority agent).
- Residence proof of Directors/partners.
- Copy of any other Registration if taken.
- Pan card copy of authorized signatory.
- List of Directors or Partners.
- Memorandum and Articles of Association/Partnership deed.
- Pan card copy of directors/partners other than signatories.
- Registration certificate under any other laws (if any).
- Address proof of the Factory premises:
- Copy of purchase agreement along with electricity bill, water bill, etc,, if factory is owned.
- Copy of leave and license agreement along with electricity bill, water bill, etc,, if factory is taken on lease.
- ‘No Objection Certificate’ from the licensor and last paid rent receipt may also be required.
Central Excise duty is an indirect tax levied on goods manufactured in India. The tax is administered by the Central Government. Government earns revenue by excise duty and invests this earned revenue for public welfare and control production of harmful product.
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