When Exactly is Output Tax Applicable?

[Jonas]

For e.g, If am getting a machine, and it consists of different components.
I have been notified about the price of each component and that is inclusive of all taxes.
When I get the machine(that consists of all components), would that be subject to taxes?

 

[Saurav]

Tax on manufacturing: Excise Duty.
Tax on sale: VAT/CST.
These are output taxes.
If you are getting the machine 'as a whole', you will be taxed once in the invoice. But if you are buying the components & later assembling them, you have to pay tax on the component as per the invoice/bill. I don't think tax is applicable on assembling.