Actual rate to the end customer..

If a company manufactures am item for Rs.100.00 than it will sell its customer (i.e. dealer or retailer) at Rs.105 (if the rate of tax is 5%).
And then the dealer or retailer will sale it on suppose 115.5 (i.e. 100+5+5+5.5 cost +profit +taxes).
So the end customer will be paying taxes 2 times.
Is the above mentioned is correct or something is wrong..