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Can excise duty and vat co-exist in the same invoice?

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20 March 2013 I purchase 570 Pc of Poly Bag from supplier @ Rs. 5.44 per piece so it goes as below.
570 Pcs x Rs 5.44 = 3101

Supplier has charged
ED @ 10% on 3101 = Rs. 310
Cess on Ed @ 25 = Rs. 6
Sec. Edu Cess on Exise Duty @ 1% = Rs. 3
VAT @ 5% = 171

Total Bill Amount is Rs. 3591

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MY QUESTION IS, Can a supplier charge both excise duty and vat at the same time?

What Idea I have is, Excise duty is charged by manufacturer only and If manufacturer does so, he should not charge VAT?

If yes, in what conditions. Please elobrate it.

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21 March 2013 DEAR MARTIN SAHAB NAMASKAR,

FIRST OF ALL, YOU SHOULD UNDERSTAND THAT EXCISE DUTY AND VAT BOTH ARE THE SEPARATE LEVIES. EXCISE IS APPLICABLE ON MANUFACTURED GOODS AND IT IS GOVERNED BY CENTRAL GOVT. WHERE AS, VAT IS APPLICABLE ON SALE TRANSACTION AND IT IS GOVERNED BY THE STATE GOVT.
WHEN A MANUFACTURER SALES HIS MANUFACTURED GOODS, HE WILL CHARGE BOTH LEVIES i.e. EXCISE DUTY FOR HIS MANUFACTURING ACTIVITY AND VAT FOR HIS SALE TRANSACTION. I HOPE IT WILL SERVE YOUR QUERY IN ALL RESPECT.

ALTHOUGH, I DID NOT WANT TO SHARE MY VALUABLE TIME UPON YOUR QUERY DUE TO MY PAST BITTER EXPERIENCE WITH YOU THAT YOU HAD ALLEGED ME UN-NECESSARILY WITHOUT KNOWING THE REALITY AND TREATED ME IN INSULTING MANNER; STILL, I COULD NOT STOP MYSELF BECAUSE "Trees laden with fruit are always bent"

FURTHER, I DO NOT SHOW MY PHONE NO. WITH SUCH GREEDY INTENTION BUT I GIVE IT CONFIDENTLY, FOR THOSE WHO WISH TO TALK WITH ME OR WHO HAVE SOME DOUBT EVEN AFTER MY REPLY.

HOWEVER, IF YOU HAVE ANY DOUBT IN MY PREVIOUS REPLY REGARDING SERVICE TAX RANGE AND DIVISION, YOU ARE FREE TO CALL "ACES SERVICE HELP DESK" ON TOLL FREE NO. 1800 425 4251 on any working day from Monday to Friday between 9 AM and 7 PM and on Saturdays from 9 AM to 2.30 PM, OR CAN SEND YOUR EMAIL TO aces.servicedesk@icegate.gov.in (TAKEN FROM ACES OFFICIAL WEBSITE aces.gov.in).

AT LAST, YOU WILL REACH AT THE RESULT THAT I WAS CORRECT.

THANKS A LOT.
Rajeev Kumar Garg
(M.Com, L.L.B.)
Consultant (Excise, Customs & Service Tax)

21 March 2013 Thanks a lot Mr. Garg.

My apologies for the inconvenience to you. I had not meaning to insult you at all. I will keep in mind, not to repeat this kind of conversation.

Once again thanks, Not only for sharing your experience with us but also providing the right resources, your contact information so that If I require you offline, I can connect with you.


21 March 2013 Can you help me out in this thread.


https://www.caclubindia.com/experts/surrender-existing-pan-card-and-then-apply-for-new-pan-card--1223729.asp

Though, I know, Your specific area is Excise and Service Tax, but you can help me in the above thread, It will be great.



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