VAT on excise duty

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Querist : Anonymous

Querist : Anonymous (Querist)

21 November 2010 I want to understand that how the VAT is leviable on Excise Duty and how it's credit can be avialed?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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23 November 2010 VAT charged on excise duty is by law, Excise duty cannot be set off against the VAT

CA.Madhusudan B.P.

CA.Madhusudan B.P. (Expert)
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23 November 2010 Sale value for the purpose of VAT is including Excise duty if any, ED is charged on basic price.

ED (except few items)goes to Central government & VAT goes for local state governemnet.

Set off is possible between input credit ED to output ED & input VAT to Output VAT.

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