Question

1. Distinguish between excise duty and customs duty briefly
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Answer 1

Answer:

Difference between Excise Duty and Custom Duty

While excise duty is levied on goods produced or manufactured within the country, custom duty applies to the goods that are sold in India but were produced in a different country. ... Custom duty is to be paid by the importer of the goods.

Answer 2

Custom duty: Customs duty refers to the tax imposed on goods when they are transported across international borders. In simple terms, it is the tax that is levied on import and export of goods. The government uses this duty to raise its revenues, safeguard domestic industries, and regulate movement of goods.



Excise duty: Excise duty refers to the taxes levied on the manufacture of goods within the country, as opposed to custom duty that is levied on goods coming from outside the country. Readers should note that GST has now subsumed a number of indirect taxes including excise duty.