Input tax credit method vat practical example



Posted on 02-04-2016        By ADMIN



 Input tax credit method vat practical example


Mr Hari purchasesgoods from Tapasvi for Rs 10000 and sell the same to Dhnanajay at Rs 12000.Calculate tax Liability of Hari assuming Vat is levied at 4%

 

Ans (by Input tax credit method)

 

Vat liability ofSale    12000*4%= 480

Input tax onPurchase 10000*4%=400 (This is called input tax credit that is vat paid onPurchase)

Vat Payable                                   =80

 



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