Net amount of vat payable

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Gaurav Singh

student

496 Points Joined February 2011

Mr. Goenka, a trader selling raw materials to a manufacturer of finished products. He imports his stock in trade as well as purchases the same from the local markets. Following transaction took place during financial year 2009-10. Calculate the VAT and Invoice value charged by him to a manufacturer. Assume the rate of VAT @ 12.50%.

a. Cost of imported materials (from other state) excluding tax – Rs.1,00,000.

b. Cost of local materials including VAT-Rs.2,25,000.

c. Other expenditure includes storage, transport, interest and loading and unloading and profit earned by him-Rs.87,500.

I got the answer 25000 but the answer is given 23438 from where i picked the question.please share your answers.

Replies (3)

Arniv Sharda

CA Final

3006 Points Joined September 2010

hey gaurav check ans

100000 @ 12.50%= 12500

and 12.50%on 87500=10938

total is 23438

and purchase of mat from locals on which vat has already been paidre not eligible for input vat credit bcoz these purchases do not show amt of tax separately

if m wrong plzz tell me

cheers