Question

What is the difference between Excise duty and Customs duty?

Answer 1

Difference between Excise Duty and Custom Duty

Superficially, both excise and custom duty are taxes levied by the government but the major difference between the two is that excise is the tax levied by the government on the goods manufactured in the country while customs duty is a tax levied upon goods imported in to the country from foreign countries.

There are many provisions that are common to both excise and customs duty. The procedures of administration, settlement and tribunal are same in both the taxes. The principles of valuation, refund search, confiscation and appeal are almost same in the case of the two taxes.

Answer 2

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$\purple\longmapsto\:$ Income tax is levied on the individual earnings of people.

$\purple\longmapsto\:$ Excise duty is levied on goods manufactured in industries and factories.