26 May 2012
excise duty is manufacturing tax and vat and cst is a sales tax. while calculating vat and cst we are including excise duty as per vat rules it leads to double taxation is is it correct or not? if is correct how it is correct? if it is not correct? how it is not correct how it is not correct? please give me some examples also
26 May 2012
Excise duty is the central tax which is only for manufacturing activity . Whereas VAT and CST are state tax which is chargeable on sales . Hence we have to charge VAT and CST on ED also. To remove this hurdle , govt is trying to introduce GST Act.
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