the selling price of certain item for producer, wholesaler and retaile

1.	the selling price of certain item for producer, wholesaler and retailer are Rs. 18750 , Rs. 24120 and Rs. 30200. if each of them pay 13% vat then how much tax is paid to the government for transaction of the item?( Rs.3926)
Answer» ong>Answer: VAT=Output TAX-input tax Output tax= Tax REALIZED by the retailer from the consumer Output tax=12.5% of 92000= 100 12.5 ×92000=Rs.11500 Input tax= Tax PAID by the retailer to the wholesaler Input tax=4% of 60000= 100 4 ×60000=Rs.2400 VAT=11500−2400=Rs.9100

the selling price of certain item for producer, wholesaler and retailer are Rs. 18750 , Rs. 24120 and Rs. 30200. if each of them pay 13% vat then how much tax is paid to the government for transaction of the item?( Rs.3926)

Answer»

ong>Answer:

VAT=Output TAX-input tax

Output tax= Tax REALIZED by the retailer from the consumer

Output tax=12.5% of 92000=

100

12.5

×92000=Rs.11500

Input tax= Tax PAID by the retailer to the wholesaler

Input tax=4% of 60000=

100

×60000=Rs.2400

VAT=11500−2400=Rs.9100