Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 19 December 2012
Excise: Duty(or tax) on manufacture of goods...
VAT/CST: tax on sale of goods
e.g. basic price of goods-- 1000
add: excide duty @ 10%(which is now 12.36%)---100
1100
add: VAT @ 10%(varies from state to state) 110
Total invoice amount 1210
Sonu Kumar
(Account Manager)
(665 Points)
Replied 19 December 2012
Excise Duty, Custom Duty, Service Tax and Sales Tax are Indirect Taxes............. 1st Three Comes Under CBEC under Department of Revenue of Central Government and Sales tax (Vat) is Imposed and Collected By the State Government. All are Deffrent from Each Other
Excise Duty is Collected on Manufacturing
Custom Duty is Collected on Import and Export
Service Tax is Collected on Services
Sales Tax is Collected on Sales of Goods
Manufactured Goods is Sold so on Manufactured Goods Excise and Vat both Imposed
Example:i Goods - 100/-
Excise - 12.36/-
Vat (5%) - 5.62/-
Selling Price 117.98
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