(Expert) 14 September 2010
Dear Anonymous, Unlike in the case of Central Excise, where the excise duty can be realised from the customer, in the case of VAT, it is the seller who is liable to pay the VAT, irrespective of whether the seller realises the VAT from the buyer or not. Thus, while in the case of Central Excise whatever the transaction value realised from the customer would be regarded as cum-duty (i.e. inclusive of duty element). However in the case of VAT, on the basic sale price the VAT rate has to be applied and paid to the Government. In case the dealer had charged less $ of VAT, then it would be his loss and has to be borne from his own pocket.