What should be charged in this situation: vat or excise duty

This query is : Resolved

Martin (Querist)
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20 March 2013 A manufacturer should charge vat or excise duty or both in the following conditions?

A. If he sells the manufactured items in his own retail stores to retail customer directly?

B. If he sells the goods to traders?

Ashish Vaish

Ashish Vaish (Expert)
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25 March 2013 In first case, when manufacturer removes goods from his factory to his own retail store he shall raise Excise Invoice and pay ED on the same and at the time of sale to customer he would be liable for VAT.
In second case, manufacturer shall raise Excise Invoice charging ED and Commercial/Tax Invoice charging VAT on sale to trader because both the activities removal from factory and sale are happening at same time.