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The dealer pays VAT by deducting the tax paid on purchases (input tax) from his tax collected on sales (output tax). Hence, VAT = Output Tax - Input Tax.
For example: A dealer pays Rs.10.00 @ 10% on his purchase price of goods valued Rs.100.00. He sells the goods at Rs.150.00 and collects tax amounting to Rs.15.00 (@ 10%). He will pay Rs.5.00 (Rs.15.00- Rs.10.00) as he has already paid Rs.10.00 to his seller while purchasing those goods.
What else can I help you with?
What are the types of vat in India?
There is only one type of VAT in India. VAT stands for Value Added Tax. There are however, different rates of VAT on different types of products.
When was vat implemented in India and karnataka?
when was vat started in karnataka
What are VAT rates applicable on bleaching powders in the states of India?
14.5% are VAT rates applicable on bleaching powders in the states of India.
In India National Income is computed by?
ministry of Finance
Value added tax recommended by which committee in India?
L.K.Jha committee introduce VAT in India.
What is the percentage of VAT levied in India for electronic goods?
electronic items
What is the percentage of VAT levied in India for mobile phones?
12.5 percent
What is the price of vat 69 in India?
its 780 in Goa and 1200 in Pune,1150 in Bangalore
What is the VAT rate on sale of used cars in Maharashtra India?
Maharashtra: 12.5% Gujarat: 4%
How many types of vat?
The types of VAT........ 1 ) INPUT VAT @ 4 % 2 ) INPUT VAT @ 1 % 3 ) INPUT VAT @ 12.5 % 4 ) OUTPUT VAT @ 1 % 5 ) OUTPUT VAT @ 4 % 6 ) OUTPUT VAT @ 12.5 %
Gross of vat and net of vat?
There is no such term as gross of VAT. The amount with VAT is called the gross amount while the net of VAT is the amount after the VAT has been deducted.
How do you calculate vat intput and output?
To calculate VAT input and output, first identify the VAT you paid on purchases (input VAT) and the VAT you charged on sales (output VAT). Input VAT is the tax included in the cost of goods or services acquired for business use, while output VAT is the tax collected from customers on sales. To determine the VAT you owe to the tax authorities, subtract the total input VAT from the total output VAT. If the output VAT exceeds the input VAT, you pay the difference; if the input VAT exceeds the output VAT, you may be eligible for a VAT refund.
