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SOLUTION
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Finding VAT Liability
for above example:
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Particulars |
Working |
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Step 1
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60,00,000 |
Total Sales
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Rs.60,00,000 |
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Less |
Nil
(Purchases not allowed to be reduced under this scheme) |
Purchase corresponding Above Sale
Purchase of Vehicles
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Rs.40,00,000
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Balance |
60,00,000 |
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VAT
Liable on 15% on balance |
60,00,000 X
15%= 9,00,000 |
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VAT Liability
at 12.5% |
9,00,000 X
12.5%= 1,12,500 |
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