Q.

Excise duty on a commodity is payable with reference to its -

A. production
B. production and sale
C. production and transportation
D. production, transportation and sale
Answer» A. production
Explanation: An excise or excise tax (sometimes called a duty of excise special tax) is an inland tax on the sale, or production for sale, of specific goods or a tax on a good produced for sale, or sold, within a country or licenses for specific activities. Excises are distinguished from customs duties, which are taxes on importation. Excises are inland taxes, whereas customs duties arc border taxes.
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