During the financial year a shopkeeper purchased goods worth Rs.4,15,0

1.	During the financial year a shopkeeper purchased goods worth Rs.4,15,000 and paid a total tax of Rs.38,000. His sales during the period consisted of a taxable turnover of Rs.50,000 for goods taxable at 5% and Rs.3,20,000 for goods takable at 12%. He also sold tax exempted goods worth Rs. 45,000. Calculate his tax liability for the financial year.
Answer» Goods taxable at 5% turover = Rs. 50,000 Tax = 50% of Rs.50,000 = Rs. 2,500 of goods taxable at 125, turover = Rs. 3,20,000 tax = 12% of Rs.3,20,000 = Rs.38,400 Given tax exampled sales = Rs.45,000 Total tax = Rs. 2,500 + Rs. 38,400 = Rs. 40,900 Tax paid = Rs. 38,000 ‘ Net tax payable = Total tax changed – tax paid = Rs. 40,900 – Rs. 38,000 = Rs.2,900 ∴ Tax liability (under VAT) = Rs. 2,900

During the financial year a shopkeeper purchased goods worth Rs.4,15,000 and paid a total tax of Rs.38,000. His sales during the period consisted of a taxable turnover of Rs.50,000 for goods taxable at 5% and Rs.3,20,000 for goods takable at 12%. He also sold tax exempted goods worth Rs. 45,000. Calculate his tax liability for the financial year.

Answer»

Goods taxable at 5% turover = Rs. 50,000

Tax = 50% of Rs.50,000 = Rs. 2,500

of goods taxable at 125, turover = Rs. 3,20,000

tax = 12% of Rs.3,20,000 = Rs.38,400

Given tax exampled sales = Rs.45,000

Total tax = Rs. 2,500 + Rs. 38,400 = Rs. 40,900

Tax paid = Rs. 38,000 ‘

Net tax payable = Total tax changed – tax paid

= Rs. 40,900 – Rs. 38,000 = Rs.2,900

∴ Tax liability (under VAT) = Rs. 2,900