Interested to Buy Any Domain ? << Click Here >> for more details...
Explain the Calculation of VAT ?
- 1 Answers
- 4830 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 |
how will one calculate TDS when the bill is with service tax (SAY an AMC bill ) and what treatment will be there when it is a rent bill with service tax. is there any rules in income tax as to deduct double taxation?? pls help with rules sir
if the reparing & machinery maintanance for one party the whole year payment paid rs.75000/- crossed than tds is deducted from amount
Under DVAT ABC is a "company" which has taken contract from Delhi state govt department and subcontracted part of work to XYZ. Where ABC is under composition scheme and XYZ is under normal scheme. Govt deducts 3% WCT from payment to ABC towards vat.Whether subcontractor is liable to pay WCT vat on his turnover though the main contractor has already discharged tax liability on entire turnover? What is the mechanism ?
Where we show the brought forwarded losses in the Balance Sheet?
what do u meant by investment banking
Kindly, tell me abount the WCT of U.P. material & labour supply for installment of lift in premises at Noida (U.P.), our lift supplier giving the bill in 90% material & 10% Labour & charged the up vat of 12.5% , Can we liable for WCT deductor ?
PLEASE PROVIDE RATES, CALCULATION AND WHEN FILING THE FOLLOWING RETURN DIRECT AND INDIRECT TAXES RATES, T.D.S., F.B.T., EXCISE
what do you mean by tds
what is the difference between captive consumption and cenvat in tally erp9 and when we have to use it
The contractor final bill is 52lac we have calculate 2% tds 104000 so we have which amount paid to contractor
what Is the ITc Claimed. how to utilized the ITC.
Give details about TDS and its applicapable rates of latest year.
1 Answers CA, Ratnakar Bank RBL,
Audit 
