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?

Questions by sujata.naik11

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  • May 21st, 2009

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.
(A)(B)( C = (B - A) )
 I don’t know the tentative date of filing VAT in other States of India.  But in Tamilnadu, before 20th of every month.

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