Excise duty and vat

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

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