Pls can anyone specify about different methods of subtraction method calucaltion ?
My biggest doubt is about indirect subtraction and intermediate subtraction method.
Pls specify with examples.... thanks everyone in advance....
Menu
Vat doubt very urgent
Replies (4)
Subtraction method: value added = sales -purchase
This mmethod is generally followed when tax is not charged separately in the invoice.
Vat liability =(rate of vat/100+ rate of vat )*taxable turnover
Kinds of subtraction methods:
1. Direct: value added = aggregate value of sales exclusive of tax - aggregate value of purchases excl. Of tax
2.Intermediate: value added: sales - aggregate value of purchases inclusive of tax
3. Indirect: value added= aggregate sales- aggregate purchases both inclusive of tax.
Recent Threads
- Conversion of Capital Asset (Shares) into Stock in
- Income tax-wrong head challan
- Regarding berthing of vesse
- Schedule FA reporting - peak value and cash MMF
- Partnership firm with foreign national person
- Audit required
- Deemed Withdrawal of ASMT-13 Orders & Adjustme
- Need advise with HRA claim
- Schedule AL limit for FY 2024-25
- Can a person use ITR 1 when she has CG of Rs.250/
Related Threads
CAclubindia
