Vat tax culculation

Under vat system tax is calculated at every sale.since at every stage there will be addition to the price at which it which it purchased this giving raise to vat calculation .generally this addition may be in the form of raising the price or employing labour on the product for new finishe dproduct.CALCULATION:let x be the  cost to wholesaler excluding vat now assume he sells with margin of 10 rupees then he has to calculate tax on x +10/-and collect the same from retailer.the vat paid by wholesaler to manufacturer can be availed as input vat. Thank you .