A manufacturer manufacture product A in his factory, which is excisable and excise is to be charged @ 12.5% on product.
Now to manufacture he will incure cost which is known as manufacturing cost, the manufacturing cost is raw material cost which include excise, vat, octroi, transport, loading, unloading. Manufacturer will also incure electricity also. Because this is his business he will also earn profit, so while charging excise he will charge excise on maufacturing cost or manufacturing cost plus profit?
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