Vat
This query is : Resolved
Rama krishna
(Querist)
05 September 2013
how is vat calculated
CMA Ramesh Krishnan
(Expert)
05 September 2013
on sales value need to apply the VAT rate specified by the VAT act
CA Pallav Singhania
(Expert)
05 September 2013
A SIMPLE EXAMPLE...
Bought goods for 62,000
incl. VAT..
62,000 x 25/125 = 12,400,
VAT RATE= 25 PERCENT ASSUMED..
Sold goods for 150,000
excl. VAT.
150,000 x 25/100 = 37,500
VAT payable
VAT ON OUTPUT - VAT ON INPUT
37,500 - 12,400 = Difference 25,100
Click below for more detailed example..
https://smallbusinessindia.intuit.in/starting-business/how-to-calculate-vat/
Bought goods for 62,000
incl. VAT..
62,000 x 25/125 = 12,400,
VAT RATE= 25 PERCENT ASSUMED..
Sold goods for 150,000
excl. VAT.
150,000 x 25/100 = 37,500
VAT payable
VAT ON OUTPUT - VAT ON INPUT
37,500 - 12,400 = Difference 25,100
Click below for more detailed example..
https://smallbusinessindia.intuit.in/starting-business/how-to-calculate-vat/
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