Hi Guarav,

 

I don't know the exact calculation.. But i can guess this will be the calculation how the answer you got;

Interstate - 1,00,000 X 12.5% (Assumed 12.5% VAT) = 12,500

Local - 2,00,000 (2,25,000 X 100/112.5) X 12.5% = 25,000

Total                                          37,500

Input VAT                -  ( 2,00,000 - 87,500 = 1,12,500 Purchases)  14,062

VAT Liability                                           = 23,438

 

Pls let me know if its wrong.

Thanks

Girish

Hi gauravi may be wrong but according to me the answer is Rs. 25000 as follow: Computation of tax payable:Output Vat 50,000Input Vat 25,000Vat payable = Rs. 25,000Computation of output Vat1. Imported goods(100000*112.5%) 1125002. Local purchase(225000*100/112.5) 2000003. profit 87500Sales 400000output vat payable = 400000*12.5% = 50000

The output VAT is 12.5% of sales. The sales is cost of material + Expenses+ Profit = 300000 + 87500 = 387500

Output VAT is 12.5% of 387500 = 48438

VAT Liability = Output VAT - Input VAT = 48438 - 25000 = 23438

It may be noted that Input VAT can be claimed on Llocal Purchase only.

 

Sales (100000+200000+87500)= 387500 Out Put Vat @ 12.5% =48438 - Input Vat 25000 Vat Payable = 48438 - 25000 = 23438 Invoice Value Charged 387500 + 48438 = 435938

See,Input tax will be 25000 as under

225000*12.5/112.5

And output tax will be 50000 as under

(200000+87500+100000+12500)*12.5%

Hence,net tax payable 50000-25000=25000.

Originally posted by : AVTAR SINGH
	The output VAT is 12.5% of sales. The sales is cost of material + Expenses+ Profit = 300000 + 87500 = 387500 Output VAT is 12.5% of 387500 = 48438 VAT Liability = Output VAT - Input VAT = 48438 - 25000 = 23438 It may be noted that Input VAT can be claimed on Llocal Purchase only.

I agree with this..
 

@ Gaurav Pushkar: Why have you included Rs. 12,500 for calculation of output tax?

12500 is tax on 100000.Since,its credit can't be taken, it is included in cost.

Prevailing CST Rate is 2% for Inter State Purchase so you can add 2000/- to the cost of 100000/- not 12500/- @ 12.5%

Thanks,doubt cleared..........

 

The output VAT is 12.5% of sales. The sales is cost of material + Expenses+ Profit = 300000 + 87500 = 387500

Output VAT is 12.5% of 387500 = 48438

VAT Liability = Output VAT - Input VAT = 48438 - 25000 = 23438

It may be noted that Input VAT can be claimed on Llocal Purchase only

add 100000,200000& 87500 and calculate Vat 12.5% u will  get 48437.5 as Vat Amount  and deduct 12.5% on Local material i.e 25000 .. When u subtract (48438-25000) u will get 23438

yes bro..You are absolutely correct...

Hi, see vat on sale RS 25000(assumed sale 225000*100/112.5) cost(exclud tax) 112500(225000-25000-87500), so 112500*12.5%= 14062.5(local purchase)so vat o sale 25000 - vat on pur.(local)14062 =10938+12500(pur. from other state)= 23438. but please reply it's correct or not.