Well, if you are manufacturer of goods which are marketable, movable and recognized as dutiable under the legal provisions, then you are bound to pay the excise duty to the government. For this, you need an excise control code number. For example, if you are a manufacturer of mobile phones, motor car etc., or if you are into business of manufacturing books for school kids, spare parts of a machine or even the complete machine or car, then you should pay excise duty to the central government. However, if you are producing something which is not capable of being bought, sold or moved by someone, or something which is in the nature of services like services or doctors, accountants, etc., then this is something which you need not worry about!
What is Excise Duty?
Excise duty is a form of indirect tax, which is levied on the goods manufactured or produced in India. The manufacturer recovers this tax from the consumers and pays the same to the Central Government. In order to pay exise duty, you need an excise control code number. If you are involved in manufacturing of alcoholic drinks, opium or narcotic drugs, then you do not fall within the preview of Central Excise. Whereas, the medicinal or toiletries containing alcohol will be covered by the Central Excise law.
If you are involved in manufacturing alcoholic drinks, narcotic drugs etc, then you are supposed to pay excise duty to the concerned state government. These are not covered under Central Excise. Whereas, the medicinal or toiletries containing alcohol will be covered by the Central Excise law.
Excise Control Code Number (ECC Number)
If you are a Central Excise assessee or a registered dealer, then obtaining Excise Control Code Number (ECC) is necessary for you. It is a PAN-based, 15-digit number.
Fill a simple form on the website to provide us the essential information about your manufacturing/production business. In order to avoid penalty you must get your registration done on time and obtain ECC number. It is also necessary for you to get PAN, as per the Central Excise Rules, whether you pay income tax or not. Duty is payable on monthly basis and can be paid in the form of a current account called Personal Ledger Account and/or Central Value Added Tax Credit. To avoid paying any extra money as interest, you should make timely payments of duty.