Answer Detail: RE: VAT Calculation

GeekInterview.com > Interview Questions > Accounting > Cost Accounting

Print |

Question: VAT Calculation

Answer: how calculate vat? computation of vat? procedure of vat in return filling? tentative date of vat return filling? also TDS. which form required?

May 05, 2009 10:30:20

c7831887

Member Since: May 2009 Total Comments: 10

RE: VAT Calculation

How to caluclate VAT?

Basic price of selling product (Landed cost of purchased goods + Manufacturing cost & other costs + Margin = Basic price)Add: Excise duty (if applicable & rate of duty will differ for each & every commodity))Add both these amounts and on this the VAT will be levied, will differ each & every commodity)Eg.: If 1kg of Plastic raw material's landed cost is Rs.50/- and convertion cost to plastic container is Rs20/- (Electricity, Wages, Administrative expenses & Margin is Rs.14/-)The Basic price of 1 Kg Plastic container is Rs.84/-Excise duty on Basic (Rs.84/-) @ 16% = Rs.13.44VAT @ 8% on (Basic Rs.84+ Excise 13.44) Rs.97.44 = Rs.7.795 Say Rs.7.80/- Accounting of VAT If 1 Kg of Plastic raw material purchased @ Rs.50/- which includes VAT @ 3% = Rs.1.50You can take credit of the VAT input (as in Excise duty): The accounting entry would be:

Purchase A/c (Raw materials) Dr	48.50
VAT payable A/c Dr.	1.50	(Contra-1)
To Supplier's A/c		50.00
(Being the raw materials purchased, acctd)

After sales, when we make payment to Govt, the entry would be

Party's A/c Dr.	105.24
To Basic sales of containers		84
To Excise duty payable A/c		13.44
To VAT payable A/c		7.8	(Contra-2)

VAT payable A/c Dr.	7.8		(Contra-2)
To VAT payable A/c Dr.		1.5	(Contra-1)
To Bank A/c		6.3
(Being the VAT payable adjusted and difference paid to Dept.)

Filing return of VAT As per Form

Credit availed on inputs	VAT Payable	Difference paid to Govt.
(Purchases)	(Sales)
(A)	(B)	( C = (B - A) )

Rs.1.50	Rs.7.80	Rs.6.30

I don’t know the tentative date of filing VAT in other States of India. But in Tamilnadu, before 20th of every month.

Back To Question