Whizkid (student) (640 Points)
16 November 2010In PCC Nov 10 RTP, a question relating to calculation of VAT using Invoice method.... They have computed the value of purchases from previous stage "INCLUSIVE" of VAT... With refernce t the provisions ... i guess the method is wrong.. Can anyone clarify this....? Guess this question is ther in ipcc also...
Ninad Pandit
(CA Final Student)
(254 Points)
Replied 16 November 2010
they have not included the VAT payable but hey have just added the amount of VAT after taking credit. so acc to me, there is no mistake.
Srinivasan
(own)
(21 Points)
Replied 17 November 2010
Dear Whizkid,
i too noticed this. RTP calculation is wrong because the cost of subsequent purchases includes VAT that is paid by them, whereas they would get credit for this when they recover VAT when they sell.
according to me only the cost of supply should be treated and margin calculated on this (without VAT)
kind regards
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