Answer / satish

Vat tax cycle

Consumer - retailer - wholeseller - company = government

(1) a company on purchase of raw material pays (rs.40/-) as vat
(2) the same company on sale of finished goods receives (rs.45/-) as vat

Now on purchase (rs.40/-) is input vat
On sales (rs.45/-) is out put tax
Calculation vat input- vat out put
40 - 45 = rs.5/-
The rs.5/- has to be paid by the company to the govt as they received from the customer (purchaser)

So the ultimate vat payer is (the consumer or the purchaser or the ultimate product user )

give me some simple examples of personal account, real account, nominal account

2 Answers   TATA,

---

journal entry for interest collected by account holder from the bank?

1 Answers  

---

Upto what extent we can keep cash in hand on year end (31 march)

2 Answers   Maytas,

---

Can pls tell me difference between simple cash book & accrued cash book?

1 Answers   Mphasis,

---

What is the difference between a provisions and reserves?

0 Answers  

---

---

Difference between Horizontal & Vertical Balance sheet

3 Answers   Chartered Accountant,

---

What do you mean by AS in accounts?

1 Answers  

---

Tell me what is the master account?

0 Answers  

---

how to calculate the rate of hard ,soft and very very hard rock rate of cubic meter

0 Answers  

---

why the accounts as personal real and nominal

2 Answers  

---

Can you differentiate accounting and auditing?

0 Answers  

---

Entries to revenues accounts such as service revenues are usually?

0 Answers  

---