Series: Subject: Topic:
Question: 24 of 59

VAT Calculation

How calculate vat? computation of vat? procedure of vat in return filling? tentative date of vat return filling? also TDS. which form required?
Asked by: sujata.naik11 | Member Since Oct-2008 | Asked on: Oct 18th, 2008

View all questions by sujata.naik11

Showing Answers 1 - 1 of 1 Answers

Answered On : May 21st, 2009

View all answers by c7831887

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) Dr48.50  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 inputsVAT PayableDifference paid to Govt.(Purchases)(Sales)  (A)(B)( C = (B - A) )     Rs.1.50Rs.7.80Rs.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.

Login to rate this answer.

Give your answer:

If you think the above answer is not correct, Please select a reason and add your answer below.

Related Open Questions



twitter fb Linkedin GPlus RSS


Interview Question

 Ask Interview Question?


Latest Questions

Interview & Career Tips

Get invaluable Interview and Career Tips delivered directly to your inbox. Get your news alert set up today, Once you confirm your Email subscription, you will be able to download Job Inteview Questions Ebook . Please contact me if you there is any issue with the download.