Question

(ii) A trader buys some good for 12000 and sells them for 15,000. If the rate of tax under VAT is 12%, find the VAT paid by the trader?
Answer this question those who know ​

Answer 1

Answer:

VAT paid by trader = Rs.1800 - Rs. 1440 = Rs. 360Read more on Sarthaks.com - https://www.sarthaks.com/163152/trader-buys-some-goods-for-rs-12-000-and-sells-them-for-rs-15-000-if-the-rate-of-tax-under-vat-12

Answer 2

Tax will be levied on ₹15,000 @ rate of 12%, i.e.,₹1,800.However, credit can be availed of ₹1,440. (i.e., ₹12,000×12%).Hence, net tax liability will be ₹360.