Laligurash suppliers sold construction materials of
Rs. 200,000 to Himchuli Suppliers making 20% profit & adding 13% VAT Himchuli suppliers spent Rs. 6000
for transportation cost & made 10% profit on the purchased price excluding VAT & levied local
tax Rs.5000 and sold to constructor What VAT amount should be paid by contractor.
Answers
Given:
Laligurash suppliers sold to Himchuli Suppliers at Rs 200,000.
Laligurash suppliers made a profit of 20%.
Goods sold has 13% VAT.
Himchuli Suppliers paid Rs 6000 for transportation.
Himchuli Suppliers made a profit of 10%.
Goods sold has VAT and Rs 5000 Tax.
To Find:
What is the VAT amount that the contractor needs to pay.
Solution
Find the selling price that Laligurash suppliers set:
Profit = 20%
Profit = 0.2 x 200,000
Profit = Rs 40,000
Selling Price = 200,000 + 40,000
Selling Price = Rs 240,000
Find the selling price with tax:
Tax = 13%
Tax = 0.13 x 240,000
Tax = Rs 31,200
Find the price that Himchuli Suppliers bought:
Selling price with tax = 240,000 + 31,200
Selling price with tax = Rs 271,200
Find the total cost Himchuli Suppliers has paid:
Transportation = Rs 6000
Total cost = 271,200 + 6000 = Rs 277,200
Find the selling price that Himchuli Suppliers set:
Profit = 10%
Profit = 0.1 x 277,200
Profit = Rs 27,720
Selling Price = 277,200 + 27,720
Selling Price = Rs 304,920
Find the tax that the contractor has to pay:
VAT = 13%
VAT = 0.13 x 304,920
VAT = Rs 39,639.60
Local Tax = Rs 5000
Total tax = 39,639.60 + 5000
Total tax = Rs 44,639.60
Answer: The contractor has to pay Rs 44,639.60 for tax.
Answer:
the contractor has to pay rs. 44639.60 for tax