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

Showing Answers 1 - 4 of 4 Answers

Anuja

  • 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 state

and much more

  Was this answer useful?  Yes

wfhinuk

  • 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 state

and much more

  Was this answer useful?  Yes

Vishal Ramawat

  • 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.

  Was this answer useful?  Yes

MOHD FAHAD

  • 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.

  Was this answer useful?  Yes

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