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I Need Full details about calculating value added tax ?
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Vat is difference Between tax on Sales(Out Put Vat) and tax on purchases ( vat input).
Let's understand with this example.
suppose you purchased goods (Rs 100 + vat rs.12.5 )= 112.5
in this purchase the actual cost is Rs. 100 and Rs. 12.5 is Vat ( Vat Input credit).
Sale pries of goods ( Rs. 150 + Vat Rs 18.75 ) = 168.75
on this sales tax paid Rs 18.75
Vat = 18.75 -12.5 = 6.25
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