Explain the Calculation of VAT ?
- 1 Answers
- 4149 Views
- I also Faced
- E-Mail Answers
Answer / abhivirthi tax and industrial
Tax paid on purchases is called Input Tax Credit. Input Tax
Credit available on all purchase bills should be arrived
(including the Input Tax Credit to be adjusted if any during
the previous month). Input Tax Credit is eligible only on
the taxable purchases made (from the registered dealers with
TIN in force) within the State and VAT shown separately.
Tax payable on the taxable sales or deemed taxable sales is
called Output Tax payable. The input tax paid on the taxable
purchases as above should be deducted from the output tax
payable and if the output tax payable is greater than input
tax credit, the balance amount to be paid to Government is
called Output Tax due/payable. If the Output tax payable is
lesser than the Input Tax Credit, the excess amount is
called Input Tax Credit available and the same will be
carried forward to the next month. The Input Tax Credit
carried forward to the next months will be adjusted in the
ensuing months.
EXAMPLE 1. (If goods are sold fully)
Purchase T.O. Rs.10,000.00 + VAT @ 14.5% Rs.1450.00 =
Rs.11,450.00
Rs.10,000.00 + VAT @ 5% Rs. 500.00 = Rs.10,500.00
Rs.10,000.00 + Exempt Rs. NIL = Rs.10,000.00
Total Rs.30,000.00 Input Tax Credit Rs.1950.00 = Rs.31950.00
Sales T.O. Rs.15,000.00 VAT @ 14.5% Rs.2175.00 =
Rs.17,175.00
Rs.11,000.00 VAT @ 5% Rs. 550.00 = Rs.11,550.00
Rs.10,500.00 VAT @ 0% Rs. NIL = Rs.10,500.00
Total Rs.36,500.00 Output Tax due Rs.2725.00 = Rs.39,225.00
VAT Payable/Due to the Government Rs.2725 -- Rs.1950 = Rs.
775.00
EXAMPLE 2. (If goods sold are partly)
Purchase T.O. Rs.10,000.00 + VAT @ 14.5% Rs.1450.00 =
Rs.11,450.00
Rs.10,000.00 + VAT @ 5% Rs. 500.00 = Rs.10,500.00
Rs.10,000.00 + Exempt Rs. NIL = Rs. NIL
Total Rs.30,000.00 Input Tax Credit Rs.1950.00 = Rs.31950.00
Sales T.O. Rs. 8,000.00 VAT @ 14.5% Rs.1160.00 = Rs.
9,160.00
Rs. 4,000.00 VAT @ 5% Rs. 200.00 = Rs. 4,200.00
Rs.10,500.00 VAT @ 0% Rs. NIL = Rs.10,500.55
Total RS.22,500.00 Output Tax due Rs.1,360.00 = Rs.23,860.00
Input Tax Credit carried forward to next month 1950 -- 1360
= Rs.590.00
Reply From:
ABHIVIRTHI Tax and Industrial Consultancy
R.R.JAGADEESAN
VAT PRACTITIONER AND INDUSTRIAL CONSULTANT
H-63, Palaami Enclave, New Natham Road,
Madurai-625014.
Cell: 9994990599
| Is This Answer Correct ? | 2 Yes | 0 No |
What is means by Central Excise ? How to calculate Central Excise ? Central Excise form No. is ?
Company should deduct TDS or not if Company is paying the amount directly to the Sub-Contractor by Debiting the A/c of Contractor and Crediting the A/c of Sub-Contractor ?? Rate??
i want know central excise duty codes with cess?
WHAT WE HAVE TO IF WE MAKE A BILL 5% CST IN PLACE OF 2% CST AND DIPOSIT THE TAX
will the Company liable to pay Service tax if the turnover exceeds 10 lakh and in the business of purchase and sale of products?
what is the incometax
Dear Sir, i am doing excise part, now I have a dout Please clarify any one. my question is I submitted July month return in before 10th August. But we sold material in july to x party excise value 12% - 1000, 2% - 20 and 1% - 10 Rupees respectively, we paid this amount in the same month it's no problem sir. but now x party reject the material and invoice in september month. may i adjuste above paid amount in september month return? How can i adjuste and where can i metione this details in Excise return? please give answer it's help full for me. Advance thanks for every one reply.
What is Cost of Acquisition?
if we mentioned vat 12.5% on bill then we print this bill on retail invoice or vat invoice
we are a manufacturer unit can we purchases of building material agst form "C" or vat C4?
We made full payment to contractor and forget to deduct TDS on that.Now contractor ledger is fully settled and we have to pass the TDS entries on that. Kindly guide rectify the entries on tds
What is the difference between TDS and TCS?
24 Answers Godrej, SSK, TCS,
Audit 
