Vat in ipcc group 1

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 September 2013 Sir,
please solve this problem
R a trader in delhi selling raw material to manufacturers of finished goods.
In VAT
cost of raw material imported from Germany =1200000
cost raw material from other states = 2040000
cost of goods purchased from Delhi (including VAT 12.5%) =2250000
OTHER EXPENDITURE which includes storage, transport, interest, loading, and unloading = 200000
net profit earned by him 20% on sales price
60% of goods sold to s in delhi
30% of goods sold to t of bombay
10% of goods sold to u of usa
compute vat , cst payable & invoice charged by him to various manufacturers
assume vat =12.5%
cst= 2%
why didnt u included CST in cost of raw material imported from other states????
please explain with a reason

CA Pallav Singhania

CA Pallav Singhania (Expert)
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27 September 2013 Purchase from Germany : 1200000
Add: R/M from other states : 2040000
Add: R/M from Delhi : 2000000
{2250000/112.5 X 100}

Add: Other Exp : 200000

COST OF GOOD SOLD : 5440000

Add: Profit : 1360000
{profit 20 percnt on sales i.e is 25 per on cost}

INVOICE VALUE : 6800000

SALES 60 per in delhi 4080000
VAT on sale 510000
{4080000 @ 12.5 percent}

Input TAx Credit on purchase from Delhi 250000

{2250000 / 112.5 X 12.5}

VAT PAYABLE

Output VAt - Input vat

510000-250000

260000 {VAT LIABILITY}

SALES on Bombay 30 per, i.e 2040000

CST Liability 40800
{2 percent on 2040000}

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CA Pallav Singhania

CA Pallav Singhania (Expert)
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27 September 2013 Cost of Goods purchased from Germany: 1200000
Add : R/M from other states 2040000
Add: R/M purchased from Delhi 2000000
2250000 /112.5 X 100

Add: Other Exp: 200000

Cost Of Good Sold : 5440000

Add: Profit 1360000
{Profit 20 percent on sales, i.e is 25 percent on cost}

Sales : 6800000

Computation of VAT liability
60 percent sold in Delhi

60 percent of 6800000,i.e 4080000
VAT on 4080000 @12.5 percent

510000 VAT liability,

30 percent to Bombay i.e 2040000
CST on 2040000 @ 2 percent
CST liability 40800

VAT Payable:
VAT on sales - Vat on purchase

510000 - 250000 {2250000/112.5 X 12.5}

= 260000

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Querist : Anonymous

Querist : Anonymous (Querist)

27 September 2013 but u excluded CST 40800 in Cost of raw materials from other states