Benefit of slashed rates of Excise Duty is available upto 31 December, 2014
In order to vitalize the growth of industry, the Department of Finance, vide Notification 4/2014, slashed down the excise duty rates on selected goods viz:/p>
- Small cars, motorcycles, scooters, three wheelers and commercial vehicles from 12% to 8%;
- Mid-segment cars from 24% to 20%;
- Large cars from 27% to 24%; and
- SUVs from 30% to 24%.
Further, to stimulate growth in the Capital goods and Consumer Durable Sectors, Excise Duty was reduced from 12% to 10% on selected goods falling within the Chapters 84 & 85 of the Central Excise Tariff Act, 1985./p>
The said notification was effective for a period of 3 months viz: April, 2014 to June, 2014. However the Government, seeking the benefit of the reduced duty, and the benefits that accrue to consumers at large has extended the validity of concessional Excise Duty, provided for the Capital goods, Automobiles and Consumer durables sectors, by six months./p>
The extant Notification No 6/2014-CE dated 25th June, 2014 has been introduced in this regard. Hence, the benefit of reduced excise duty on the said goods can now be availed till 31st December, 2014.