Question { 11525 }

what is diffrant betwwen exice duty & sale tax

Answer

Excise tax refers to the tax that is levied upon production
of an item and the manufacturer has to pay it when the
finished good goes out of the factory. Thus it is also
called as production tax or manufacture tax.Excise is
different from customs as excise duty is levied on goods
produced inside the country whereas custom duty is charged
on good produced outside the country.

Sales tax is a tax that is levied upon the end consumer of
a product. Normally it is included in the MRP of the
product so the consumer knows that he is paying the tax
when he purchases an item from the market. In some cases,
shopkeepers add it in the last of the invoice to keep it
separate. This amount that a shopkeeper collects from the
consumers is deposited by him to the government. This is a
direct tax that is difficult to evade as a shopkeeper
cannot hide his sales.