4) A dealer purchased 11,000 kgs of inputs on which VAT paid @ 3% was 3,000.
He manufactured 10,000 kgs of finished products from the inputs. 1,000 kgs.was
the process loss. The final product was sold at uniform price of 10 per kg., as
follows:
Goods sold within the State:4,000 kgs. 40000*12.5%=5000/-
Finished prodeuct sold in the course of inter-state sale against C form-2,500 kgs. .........25000*2% = 500/-
Goods sent on stock transfer to consignment agents outside the State-2,000 kgs. 20000*4% duty reversal for stock transfer = 800
Goods sold the Government department outside the State-1,500 kgs. 15000*12.5% = 1875
There was no opening or closing stock
of inputs. WIP or finished product. The State VAT rate on the finished product
of dealer is 12.5%. Calculate the liability of VAT and CST. Find VAT credit
available to dealer and tax required to be paid in cash.
==========================================
available credit 3000 less duty reversed for stock transfer 800 = 2200 vat in hand
liability 5000+500+1875= 7375
so vat payable in cash (7375-2200) =5175
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