M .K. Jha (CA Final) (484 Points)
13 November 2010Hi all,
please reply me of a query
A question asked in RTP nov 2010 QUESTION NO.24. about VAT Calculation with addition method .........
Please clear me the correct answer....
NORMALLY,
ADDITION METHOD IS :-
(I) SALES
(II) TAX ON SALES
(III) PURCHASE
(IV) TAX ON PURCHASE
(V) VAT PAYABLE (II) - (IV)
Profit % given on cost
My question is Profit calculation & Invoice price of Rishab, Suhani and Galaxy Medicine................
Devendra
(Chartered Accountant)
(4775 Points)
Replied 13 November 2010
Refer IPCC Nov . 2010 RTP Pg. No. 160 for Solution and compare with the solution given by me:-
As per my views Computation of VAT in the problem will be as follows:
Stage Particulars VAT Liability Less VAT Credit Tax to Govt.
1 Medicines sold by Sambhav Medicals 4000*4/100 Nil 160
to Rishab Pharmacy at Rs. 4000 = 160
2 Medicines sold by Rishab Pharmacy to 6500*4/100 260 - 160 100
Suhani Medicos at Rs. (4000+160)x = 260
156.25%
3 Medicines sold by Suhani to Galaxy at Rs. 8450*4/100 338 - 260 78
(6500+260) x 125% = 338
4 Medicines sold by Galaxy to Consumer 10735*4/100 429 - 338 91
Rs. (8250+338) x 125% = 429
Thank You
Regards,
Devendra P Kulkarni
CAclubindia
