pavan (Private) (222 Points)
04 June 2016compute invoice value to be charged and amt of tax payable under vat by a dealer who had purchased goods for RS 100000. AND after adding expenses rs 50000 and profit of rs 75000.had sold the same... the vat rate on purchase and sales are 4.5% and 12.5% respectively.... CAN PLZ Some one help me to solve this and please mention the selling price i have a doubt in that please
SUPRIYA
(PRACTICE)
(853 Points)
Replied 04 June 2016
Assuming Purchase Price Rs 100000/- is exclusive of Input VAT and goods are purchased from a local dealer . VAT on sales will be additional charge on profit
Purchase Value of Goods: 100000
Input Vat on Purchase @ 4.5%: 4500
Now for calculation Sale Price
Purchse value of goods: 100000
Add: Expenses: 50000
Add: Profit: 75000
Total value of Goods 225000
Add Vat 12.5% 28125
Invoice Value of Sales 253125.
Tax Liabitity= 28125-4500=23625
pavan
(Private)
(222 Points)
Replied 04 June 2016
thank you bro...
can u pls help me to solve last one question please
X is a manufacturer registered under VAT. He provides u the following info f.y 2015-16
1.purchase from local dealer registered dealer (excluding vat 4%) RS 1,15,000
2.purchases from a dealer having opted composition scheme(including vat 4%) RS 2,20,000
3.PURCHASES OF MACHINERY ELIGIBLE for input credit on 1-10-2015(excluding vat)Depriciation rate 15%p.a RS 5,00,000
4.other direct and indirect exps -30% of total purchase (excluding dep)
5.profit margin 20% of total cost
6.unutilised balance of vat input credit as on 1-4-2015 RS 7500
7.90% OF production sold during the year
8.Vat rate for sales 12.5%
Find out taxable turnover ,net Vat payable and input credit for the year 2015-16..
SUPRIYA
(PRACTICE)
(853 Points)
Replied 04 June 2016
Asuming 12.5% vat rate on machinery
Total Purchase= 115000+220000+500000= 835000
Other cost = 30% purchase value = 30% of 835000 = 250500
Depriciation ( for six months) = 37500
Total cost = addition of all above = 1123000
Add Profit = 20% of 1123000 = 224600
Total salesable goods = 1347600
90% goods sold = 1347600*.90 =1212840
Total vat on sales = 1212840*12.5% = 151605
Input Tax Credit = 7500+ (115000*4%)+(500000*12.5%) =74600
hence tax payable= 77005
pavan
(Private)
(222 Points)
Replied 04 June 2016
I AM VERY MUCH THANKFUL TO U ...GOD BLESS YOU....
ONCE AGAIN THANK YOU
pavan
(Private)
(222 Points)
Replied 04 June 2016
IN SECOND CASE IT IS INCLUDING VAT SO WE SHOULD TAKE 211538 (EXCLUDING VAT) OR 220000 ONLY????
SUPRIYA
(PRACTICE)
(853 Points)
Replied 06 June 2016
In second case purchase is from composition dealer and including tax purchase are not taken for setoff. hence total purchase value will be taken as purchase
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