Guide To Excise Tax  

An excise tax is comparatively a trivial source of revenue for the government. These are applicable to certain products and events that are exercised by various business companies. Excise taxes are supposed to be a form of taxation that are charged tactfully which means the government does not attach them right away.

The manufacturer or the merchant selling the particular product is required to pay the taxes to the government. There are normally two ways in which these taxes are charged one is by putting a fixed percentage on a certain type of product and another is by imposing a fixed amount of dollar depending on the bulk of a product purchased.

Business companies which are engaged in production and selling of certain types of products as guided by the government are required to pay excise taxes. The IRS Form 720 spells out the complete catalog of all those products which are subjected to excise tax. Such business firms are required to file form 720 quarterly the date of submission is one month later at the end of the month. Hence, for the quarter end of March, the submission deadline will be April 30, and like wise for other quarters too. One can also file the form electronically and send it by mail.

At present the business firms which are engaged in the following types of products are required to pay excise taxes:

    • Producer of coal, gas guzzlers etc.
    • Domestic petroleum, oil spills and ozone depleting chemicals.
    • Fuels that are utilized in business.
    • Air transportation and communications.
    • Purchase of trucks, trailers, semi trailers at a sale price.
    • Passenger tax who travel on ship.
    • Foreign insurance tax.
    • Fishing equipments used for sports.

Additional floor stocks tax on ozone depleting chemicals.

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Guide To Excise Tax

What-Is-Excise-Tax      Excise taxes very much similar to a sales tax are collected from the merchants and are subsequently handed over to the government. This type of tax collection is considered to be a minor source of income for the government. Unlike income taxes, which are levied from the consumers directly, an excise tax is framed in such a manner that it gets amalgamated in the price of the product in a way that it becomes hidden for the consumers and ultimately is a burden on them. More..




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