Answer Posted / 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 )
| Is This Answer Correct ? | 3 Yes | 1 No |
Post New Answer View All Answers
HOW CAN I OPEN A CC A/C ? WHAT ARE THE MINIMUM REQUERMENT TO OPEN A CC A/C ? WHAT ARE THE FACILITY OF A CC A/C IN THE BUSINESS FIELD ? WHAT ARE THE BANK CHARGES AND INTEREST IN CC A/C ?
when receieve cheque from a party and we deposite cheque in bank how do this entry
Do you know public accounting?
What knowledge should financial accountant have?
How we will dabit profit & Loss a/c in tally because profit & Loss a/c is tally generated a/c. we have to make provision for tax.
What is ERP? Diff b/w Income & Expenditure a/c & P/L a/c? What is the fullform & the application of SAP? What is the reasons where Balance sheet will not tally?
Sir, Now, i am purchasing ply wood, board, and other material for my office furniture. But now the furniture is incomplete so what would be the journal entry for this exp. in book.
what do you mean by Firm
What is "deposit in transit"?
2. A budgeted profit statement of a company working at 75% capacity is provided to you 2 below, Sales 9,000 units at Rs. 32 Rs. 2,88,000 Less: Direct materials Rs. 54,000 Direct wages 72,000 Production overhead: fixed 42,000 variable 18,000 1,86,000 Gross profit 1,02,000 Less: Administration, selling and distribution costs: fixed 36,000 varying with sales volume 27,000 63,000 Net profit 39,000 You are required to: (a) Calculate the breakeven point in units and in value. (b) It has been estimated that: (i) if the selling price per unit were reduced to Rs. 28, the increased demand would utilise 90% of the company's capacity without any additional advertising expenditure, and (ii) to attract sufficient demand to utilise full capacity would require a 15% reduction in the current selling price and a Rs. 5,000 special advertising campaign. You are required to present a statement showing the effect of the two alternatives compared with the original budget and to advise management which of the three possible plans ought to be adopted, i.e., the original budget plan or (i) above or (ii) above. (c) An independent market research study shows that by spending Rs. 15,000 on a special advertising campaign, the company could operate at full capacity and maintain the selling price at Rs. 32 per unit. You are required to: (i) Advise management whether this proposal should be adopted.
how many times we can deposit the old currency in one a/c in the bank
Tell me under the accrual basis of accounting, when revenues are reported in the accounting period?
what is the nature of profit and loss approprition account.which entity prepare this.
What is fiduciary accounting?
What is entry of Dishonored cheque issued to supplier
