Accounting for Excise Duty Flashcards
Charging Section of the Excise Duty Act?
section 5
What is charged excise duty?
excisable goods manufactured in Kenya
excisable goods imported into Ky
excisable services supplied in Ky
Who pays for excise tax?
manufacturer of excisable goods
licensed person making an excisable supply
importer of excisable goods
Tax point?
excisable manufactured goods- time of removal from factory
goods consumed in the factory - at time of consumption
services -time of supply of services
imported goods
petroleum products - at the time of importation or such other time as specified by CS
other excisable goods - time of importation
when is excise duty paid?
goods manufactured - 20th day of the succeeding month
services - 20th day of the succeeding month
imported goods - at the time of importation
Excisable value of imported goods?
sum total of:
customs value of goods as determined under the EACCMA
duty payable on the goods under EACCMA
what is not included in the excisable value of goods?
VAT payable on the supply of goods
cost of excise stamps
cost of returnable containers
what is the excisable value of excisable services?
for an arms length transaction, the fee, commission, or charge payable for the services
any other case, the open market value of the services
what is not included in the excisable value of services?
VAT
interest
insurance premium
how do you determine customs value (CIF)?
FOB value - invoice price of goods or price on pre-shipment inspection, whichever is higher
freight
insurance
what is the excisable value of manufactured goods?
ex factory selling price not including VAT, cost of excise stamps and cost of returnable containers
what is ex factory selling price?
price payable by purchaser. has to be at arms length.
in any other case, open market value of the goods at the time of removal of the goods from the factory
what are the different rates of tax?
specific rate
advalorem rate
mixed/composite rate
