Hii to all,
can any one clear me with either the vat is add after adding the profit margin or first profit margin is added on purchase price and then vat is applied
CA Mitesh N Kothari
(9821662799)
(391 Points)
Replied 18 February 2015
Vat will be applied on your selling price. explained as below
Cost 100+5 Vat=105
Sale 200+10 Vat = 210
Net Vat Payable by you to government = 10 -5 =5
Rs 10 Vat = 200 *5%