Amount of vat

Dear CCI members,

My friend have a Furniture Business since 15 years and now he wants to close it for some perosnal reasons. But his closing stock for the year ending was Rs. 50 Laks. Some people are saying that he has to pay a huge amount as VAT in order to close the firm because the value of closing stock is such a large amount.

Please clarify me in this regard,

1) The amount of VAT may be upto what extent ?

2) Whether i have any alternate for reducing the tax amount ?

Please clarify me in this regard as am unaware of this concepts.

Thank You All....