If you are manufacturer of goods which are marketable, movable and recognized as dutiable under the legal provisions, you are bound to pay the excise duty to the government. For this, you need an excise control code number.
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.
The 15 digits in the ECC number indicate:
1. Digits 1 to 10 – PAN of the assesse;
2. Digits 11 and 12 – Excise manufacturer or dealer (EM or ED)
3. Digits 13, 14 & 15 – Unique System generated serial number
How Do I Get an Excise Control Code Number?
Registration for central excise can be done online. The steps for getting the registration are as follows:
1. Pick any one of the forms for registration: A1, A2 or A3. Forms A2 and A3 are to be filled by those who deal with the manufacturing of garments and tobacco. All other businesses needs to fill A1.
2. The registration form needs to be accompanied by the following essential documents:
a. PAN card of the firm;
b. Address proof of the company, such as utility bills;
c. The ground plan of the factory premises, to show the boundaries of the premises to be registered under the central excise department;
d. Property holding rights such as a lease agreement or rent agreement;
e. Address proof of the head office (if different from the registered office);
f. Bank statements for the past two months;
g. Copies of certificates of registration with customs department, import-export code and VAT;
h. PAN Card and address proof of all partners and directors/partners of the company/partnership;
i. Copies of MoA and AoA/Partnership deed;
j. A list of goods to be manufactured that fall under excise duty rules;
k. List of excisable goods to be used for manufacture/trade.
Once the registration form is submitted with the following attachments and all details filled in, the authorized officer (inspector or superintendent here) will scrutinize the form for relevant information.
In case the information is not sufficient, they will send in a notification regarding the same and demand further proofs to be submitted.
However, if the documents are sufficient and satisfactory, the approval of registration (A certificate) will be granted within 7 days of receipt of the application form.
The 15-digit Registration number, or the Excise Control Code number, will be allotted and the registration stays with you for the lifetime, unless revoked or suspended due to unlawful contract/or breach of any condition laid down by the law.
Surrender of Eccise Control Code Number
The registration certificate needs to be surrendered when closing down manufacturing/operations of the company.
Excise duty, registration and its payments are an essential and mandatory part of doing business/trade in the country.
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 a PAN, as per the Central Excise Rules, whether you pay income tax or not. Duty is payable on a 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.
What is Excise Duty?
Excise duty is a form of indirect tax that is levied on the goods manufactured or produced in India. The manufacturer recovers this tax from consumers and pays the same to the Central Government. In order to pay exise duty, 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.
Further, 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.