Question

A trader sells entire raw material to a manufacturer of finished products in the same state. He buys his stock in trade from other states as well as from the local markets. Following transactions took place during the financial year 2012-13: Cost of materials purchased from other States including central sales tax @2% Rs 3,06,000 Cost of local materials including VAT: Rs 6,75,000 Other expenditure including storage transport, interest, loading and unloading and profit earned by him: Rs 2,62,500 Assuming the rate of VAT @ 12.50%, what will be the VAT and invoice value charged by him to the manufacturer?

Q: Answer-A trader sells entire raw material to a manufacturer of finished products in the same state. He buys...

I. Cost of materials purchased from other States including central sales tax 2 Rs 3,06,000 Cost of local materials including VAT Rs 6,75,000 II. Cost of local materials excluding VAT Rs 6,75,000112.5 100 600000 Total of I II 306000 600000 906000 Other expenditure 2,62,500 Total 1168500 VAT 12.5 146062.5 Total Invoice Value 1314562.5 VAT 146062.5 75000 71063

A VAT Payable – Rs 71,063; Invoice Value – Rs 13,14,563

B VAT Payable – Rs 71,000; Invoice Value – Rs 13,14,000

C VAT Payable – Rs 71,050; Invoice Value – Rs 13,14,550

D VAT Payable – Rs 70,000; Invoice Value – Rs 13,15,000

Practice Next

Detailed Solution

More Accounts Questions

Relevant for Exams:

Hey! Ask a query

Please Register/Login

RBI Grade B 2026 Phase 1 Memory Based Paper