Vat and cst clarification needed

Jagadish (Director) (32 Points)

14 October 2011  

I am looking at some clarification on VAT and CST on how they are calculated. Somehow it has seen confusing calculations and never something that clarifies the same. Here is an example that I need help on:

I am a registered dealer in State of Karnataka. I purchase a Laptop bag (VAT applicable 14%) from a vendor.

Purchase price inclusive of VAT: 1121

I want to Sell the bag to outside state company located in Hyderabad and they want to use the product for gifting it to their employees. I expect a profit of Rs 50.

What should be my final selling price (inclusive of Sales Tax) so that I make Rs 50 as profit? Detailed Calculations would really help.