Excise duty and duty free credit entitlement

Excise duty is levied on things produced within the country.Excise duty is a part of the p&L statement of most of the construction companies.

There is sometimes another term used known as the accruals under duty free credit entitlement
It is basically an entitlement to import capital goods duty free under the duty free credit entitlement certificate route.

"The only exception to the latest standpoint would be import of agriculture, dairy products, motorcars, sports utility vehicles and all-purpose vehicles. These products and items cannot be imported under the entitlement available in the DFCEC route.

Under the DFCEC route, service providers (other than hotels) are entitled to duty-free imports equivalent to 10 per cent of the average foreign exchange earned by them in preceding three licensing years. Hotels are entitled for duty-free imports equivalent to 5 per cent of the average foreign exchange earned by them in preceding three years.
This entitlement would be available only to those service providers, who have a total foreign exchange earning of over Rs 30 lakh in the preceding one/two/three licensing years."