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What is VAT? What type of VAT? in Tally 7.2 How`s work VAT?

Asked by: Interview Candidate | Asked on: Nov 17th, 2005
Showing Answers 1 - 4 of 4 Answers
Anuja

Answered On : Mar 8th, 2006

VAT is value Added Tax in European Countries. It's a Sales Tax levied on the sale of goods and services. it is an Indirect Tax.Tally 7.2  simplifies every aspect of VAT:1. Determine user-defined VAT rates on products, classification of purchase and sales transactions based on VAT definitions.2. Generate VAT-compliant invoices 3. Collate VAT reports containing input tax paid, output tax collected, carry forward balance and net tax payable 4. File specific monthly/quarterly and annual Statutory Returns and forms compliant with the laws of your stateand much more

  
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wfhinuk

Answered On : Mar 8th, 2006

View all answers by wfhinuk

VAT is value Added Tax in European Countries. It's a Sales Tax levied on the sale of goods and services. it is an Indirect Tax.Tally 7.2  simplifies every aspect of VAT:1. Determine user-defined VAT rates on products, classification of purchase and sales transactions based on VAT definitions.2. Generate VAT-compliant invoices 3. Collate VAT reports containing input tax paid, output tax collected, carry forward balance and net tax payable 4. File specific monthly/quarterly and annual Statutory Returns and forms compliant with the laws of your stateand much more

  
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Vishal Ramawat

Answered On : Aug 10th, 2011


VAT (Value Added Tax): It is value added Tax. means total value which is added in goods price as a profit , on that value, the tax is paid is called VAT.

we can see it with example:

goods Purchase= 20000
Input Tax @ 4 % = 20000*4%= 800

now we sold this goods

Sale = 35000
Out put tax @ 4 % = 35000*4% = 1400

When we purchased Goods the saler collect a tax value from us as a sales tax. then we sold goods. we charge a tax amount in invoice. finally wen we pay tax to govt.

then total value of tax payble will be : Out put tax - Input Tax= 1400-800 = 600.

So Nett Tax payable Amount Is Rs. 600. this amount is a part of total value added in sales price not that sales price.

we can see it : Total Value add: Sales - Purchase = 35000-20000= 15000.

and tax amount on value added:15000*4 % = 600.

it has been proved that VAt Is an value added Tax.

  
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MOHD FAHAD

Answered On : Feb 19th, 2012


VAT (Value Added Tax): It is value added Tax. means total value which is added in goods price as a profit , on that value, the tax is paid is called VAT.

we can see it with example:

goods Purchase= 20000
Input Tax @ 4 % = 20000*4%= 800

now we sold this goods

Sale = 35000
Out put tax @ 4 % = 35000*4% = 1400

When we purchased Goods the saler collect a tax value from us as a sales tax. then we sold goods. we charge a tax amount in invoice. finally wen we pay tax to govt.

then total value of tax payble will be : Out put tax - Input Tax= 1400-800 = 600.

So Nett Tax payable Amount Is Rs. 600. this amount is a part of total value added in sales price not that sales price.

we can see it : Total Value add: Sales - Purchase = 35000-20000= 15000.

and tax amount on value added:15000*4 % = 600.

it has been proved that VAt Is an value added Tax.

  
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