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.
CAclubindia
