Excise and VAT

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CA KARTHIK (Querist)

26 June 2010 We are in the manufacturing of biscuits.
For valuing Excise duty, section 4A is considered and on MRP less abatement and duty is paid.

Wherease for paying VAT, commercial value is computed and VAT on such sales value is arrived.

Why Excise and VAT are not valued on the same value?

Is there any case law supporting the same.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

26 June 2010 Both the taxs are applicable based on different Tax law and act. It may not be necessary should be same

CA KARTHIK

CA KARTHIK (Querist)

26 June 2010

CA KARTHIK

CA KARTHIK (Querist)

26 June 2010 THANKS FOR THE REPLY SIR.
CAN YOU PLEASE QUOTE A CASE LAW FOR THE SAME AS I HAVE A QUERY FROM SALES TAX DEPARTMENT OFFICIALS.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

26 June 2010 Dear Karthik.

I am not understading your query, Since both are different Law and act, which case law can i provide. please let me know what exact query from Sales

Since your following Sec.4A MRP scheme under Excise obivously the abate ment can be taken because MRP may or maynot include the margin also but excise will apply on the value before adding the margin which is produced value but sales tax is not like that is on the sales value including Magin

Also VAT will applicable on excise duty (which is Product value plus excise duty)

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