Excise duty borne by customer ?

Aditya Jain (Final (New) November 2011)   (763 Points)

10 November 2011  

Why is it said that Excise is borne by Manufacturer and Sales tax is eventually borne by customer ? Fact is  when goods are removed from the place of production, the invoice contains both VAT and Excise Duty and this is eventually passed on through wholesalers and retailers and eventually to customers . So fact is that Customer bears 2 types of taxes on the same product - VAT and also Excise Duty .

     Please clarify me on this . Because what i think is Government collects Tax in 2 forms for the same product . On one single product, Government collects tax in the form of Excise Duty and VAT at the time of Manufacture and subsequently also it collects VAT for the value addition from the flow of goods through Wholesalers and Retailers .