Compute the VAT payable at each stage using ‘Invoice method from the particulars given below:
Particulars PROFIT (as % of Cost)
X sold the medicines
manufactured by it to
the distributors of
medicines-Y-at Rs. 4000 ------
II Y sold the medicines
to the Wholesalers-Z 56.25%
III Z sold the medicines
to the Retailers-A 25%
IV A sold the medicines
to the ultimate Consumers 25%
Assume that the VAT rate is 4% and that there was no value addition at various stages of sale except profit margin
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problem on VAT
ABHINANDAN JAIN (CA Student) (886 Points)
06 February 2011