What should be charged in this situation: vat or excise duty

A manufacturer should charge vat or excise duty or both in the following conditions?

A. If he sells the manufactured items in his own retail stores to retail customer directly?

B. If he sells the goods to traders?
 

Replies (4)

Excise gets attracted when we manufacture something while CST/VAT gets attracted when we make interstate/intrastate sale.

Since in the question both have taken place, hence both shall be levied.

Its the tax incidence which matters.

An expert may confirm.

Shivani

shivaniadream @ gmail.com

 

In Both Cases Excise Duty and Vat Both are Applicable 

Both will be charged..

Sec 4(3)(cc) of excise act states that time of removal of goods cleared from factory to depot(or retail stores,factory outlet) --time of removal shall be deemed to be the time when goods are removed from factory for sending them to depot etc & since excise duty is paid at time of removal so  excise duty has to be paid at factory gate..not at the time of sale from outlet & VAT will be paid because of there is sale taking place....Plz note-Goods at depot,retail stores,factory outlet etc are duty paid goods..

Agree with you

 

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