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if we are going to get the refund afterwards so why we
should pay in advance the excise duty?
if the excise duty paid in advance then what are the
benifits for the company?
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Answer / cmc_vaishnav@yahoo.com
1. Mfg (of a car) pays duty on raw materials which is to be
used for new finished product which again requires to levy
duty on sale (In this case Govt uses this money for its use
for the time span of purchase - mfg activity-sale)
2. The individual end user e.g.car owner doesn't get refund on
purchase of new car as it is meant for his use.(except in case
of co / firm which get credit 50% in current year & balance
50% in next year)
3. Study the above example thoroughly. Govt retains duty at
the final stage.(except in case of co / firm which get credit
50% in current year & balance 50% in next year)
4. No benefits for the company
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