Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: VAT Audit :: ACCOUNTING STANDARDS :: empanelment :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: VAT RATES :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: cpt
Customs and Excise »
 IGST on high-seas sale of imports is levied only during customs clearance
 Central Excise Rules, 2017 – Part II
 Central Excise Rules, 2017 – Part I
 Allocate the charges amongst the Members of the Central Board of Excise and Customs
  Constitution of Review Committees of the Chief Commissioners of Central Excise and Service Tax-Regd.
 4 new members appointed in Central Board of Excise and Customs
 Constitution of Review Committees of the Chief Commissioners of Central Excise and Service Tax-Regd.
 Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017
 Central Board of Excise and Customs to soon notify new procedural framework
 CBEC set to be Central Board of Indirect Taxes and Customs
 Govt to give customs, excise duty benefits to boost solar rooftop sector

Contraband cigarettes market estimated at Rs 1,900 crore this year
January, 16th 2012

High excise duty on cigarettes in India has resulted in the growth of contraband trade of the product with the total market estimated to reach Rs 1,900 crore this year, up nearly 12 per cent from the previous year, according to industry estimates.

In 2010-11, the size of contraband cigarettes market in India was around Rs 1,700 crore.

According to industry players, 17 billion cigarette sticks are smuggled into the country every year, making India the sixth highest consumer of smuggled cigarettes in the world.

Experts cited the huge price differential in India and neighbouring countries as one of the primary reasons for the increase in smuggling of cigarette in India.

Low cost cigarettes make their way to India from countries like China, Myanmar, Nepal, Bangladesh, Indonesia and Pakistan, they said.

"Smuggled and contraband cigarettes are becoming a bigger and bigger problem in India. There are lot of illegal cigarettes, which are smuggled from outside India and even counterfeit products are also sold in huge quantity," an official working with a cigarettes company said.

The government needs to take serious action to control the illegal trade, he added.

The smuggled cigarettes of 80 mm size could still be cheaper than an authentic regular sized 70 mm filter cigarette in India. "This is a direct threat to the filter segment which constitutes 69 per cent of the total Indian cigarette market," the official said.

When asked about the factors behind the increase in illegal trade of the product, he said, "Extreme high excise duty and VAT rate on cigarettes in India make smuggling a particularly attractive proportion."

Citing an example, he said the total tax on a legitimate Rs 100 pack is as high as Rs 68, but as contraband cigarettes do not pay any of those taxes, they are priced at up to Rs 80 and still allow a high margin.

According to the industry estimates, 60 million sticks are smuggled every month in Mumbai followed by 35 million sticks in Delhi and 20 million sticks per month in Pune, Bangalore and Hyderabad.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multimedia Presentations Multimedia Solutions 3D Solutions Corporate Presentations Business Presentations Multimedia Presentation India M

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions