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what is vat?
what is excise?
what is form c & d in sales tax?

Answer Posted / krishna kumar

Vat is "value added tax". It is applicable only on
ragistered delars. They purchaging and saling the products.

Exp.
Product cost by manufacturer---100 Rs.

Delar has to pay to manufacturer
100 + Excise Duty 10.5(Only for manufacturer)=110.5
Rs.

Then delar will sale the product

(110.5+profit"8 Rs.")*1.04=123.24 Rs.



here .04 is vat applicable.

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