Vat doubt in selling price

compute 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 
 

Replies (6)

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

 

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..

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

I AM VERY MUCH THANKFUL TO U ...GOD BLESS YOU....

ONCE AGAIN THANK YOU

IN SECOND CASE IT IS INCLUDING VAT SO WE SHOULD TAKE 211538 (EXCLUDING VAT) OR 220000 ONLY????

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

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 28 October 2026
Article assistants

Shyam S Gupta and Company

New Delhi

CA Inter

View Details
Company
Featured 07 November 2026
Chartered Accountant

DPV & Associates

Chennai

CA

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
24 October 2026
CA Industrial Trainee

Fytomax Nutrition Private Limited

Aurangabad

CA Inter

View Details
Company
Featured ARTICLESHIP 28 October 2026
CA- Inter and Articles

N N V Satish & Co.,

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details