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1> how can calculate tax for provide service?
2> how can calculate vat for selling product?
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Answer / irm
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in tally how can solution above that question
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Answer / anuj
VAT can be computed by following three methods
1) Addition Method- Aggregating all the elements of the value added into the product like wages, profits and interest.
2) Subtraction Method- In this method value addition is calculated by the means of difference between total output and total input.
3) Tax Credit Method- In this method tax paid on purchases is calculated and after seeking credit of such input tax with the amount of tax on sales, the net tax liability is calculated
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