CA Madhukar N Hiregange
CA Rajesh Kumar T R
CA Roopa Nayak
Manufacture also constitutes a major part of the economic activity of our country. The Central Government had also realised that unless this sector is nurtured, there would be no inclusive growth. The vast unemployed population of the country mainly in the rural areas also requires gainful employment which can be provided only by a vibrant and robust manufacturing sector. Although the services sector is growing exponentially, the maximum employment would be in the manufacturing especially the SSI and other ancillaries sector. Central Excise has for the past decade been the mainstay of the revenue with service tax and direct taxes stealing the show as far as growth of the taxes are concerned. The Central Government gets the revenue from Central Excise, Income Tax, Service Tax and Customs, and these taxes are administered by Central Government.
The scores of multinationals setting up shop in India may also wish to take advantage of the technical skills at lower costs. The world over India today is truly considered an alternative and an attractive alternative option to China for outsourcing of manufactured products! parts. The purchasing of automobile or steel companies by Indian companies would lead to increasing outsourcing from India of manufactured products. The slow but sure increase in the standard of living of the average citizen foretells huge demands!increased consumption. The fall in the average rates of duty for the past few years reaching 10% now if continued would augur well for the manufacturers within India. Today India is among the top three nations of the world in terms of purchasing power.
The reforms in Central Excise have been largely successful in spite of the partial rollback taking place through executive instructions and actions in the past three years. The doing away with almost all statutory formats, declarations and intimations has made the tax compliance less cumbersome. The self assessment has been in place for all products except Cigarettes. The onus of compliance has shifted from the Range to the Manufacturers.
Professional advisors, managers and executives in charge of Taxation should have an in depth idea of the law of central excise as there is a very high responsibility on them. This knowledge would make the decision-making process function less risky and make the manufacturing activity cost effective thereby remaining globally competitive.
This soft book has made an attempt to introduce & update the law and procedures of excise in brief. For the interested, an explanatory section has been included providing the landmark judicial decisions and definitions as may be required. The specific important topics! subjects of interest to professionals as well as the industry managers have been included in brief separately.
The tax planning avenues, special chapter on the SSI‘s, Traders registration, FAQs, Common Errors chapter are a result of the assessment of readers‘ need. The audit from the Government‘s side has gained a very high importance with the powers of scrutiny removed from the Ranges. Consequently the need for professional audit by Chartered Accountants or other professionals of the excise records is being felt. The possibility of the mandatory audit in line with Income Tax is real as that would be value additive to the tax administrators, industry and the consumer now appear slim and maybe incorporated in the GST regime.
The book has reached this “user friendly” form largely on suggestions of my professional colleagues in practice and industry who provided a direction and topics of interest, for which I am indebted. My thanks to articles and assistants in my office staff who have done the job of collation of the FAQs and Common errors. This was initially
bought out in 2002 by the KSCAA. This updated 2012 edition has been largely the effort of CA Roopa Nayak who requires special praise for the meticulous editing and updation.
We would like to profusely thank CA Sriharsha who has updated this book..
The readers, my professional colleagues, other professional and students are requested to provide their free and frank comments on the deficiencies in this effort by our team to enable us to improve. firstname.lastname@example.org, email@example.com and firstname.lastname@example.org