Question

Excise duty tax is levied on the _______.

• A. import of goods
• B. export of goods
• C. production of goods
• D. sale of goods

Answer 1

Answer: (C)

production of goods

• Excise duty is a tax on manufacture or production of goods. Excise duty on alcohol and narcotic substances is collected by the State Government and is called State Excise duty. The Excise duty on rest of goods is called Central Excise duty.
  
• Sales Tax is different from the Excise duty as former is a tax on the act of sale while the latter is a tax on the act of manufacture or production of goods.