Question

$\huge\bold\blue{Hey!!~guys}$

A manufacturer buys raw material for rupees 40000 and pays sales tax at the rate of 4%. He sells the ready stock for rupees 78000 and charges Sales Tax at the rate of 7.5 % find the VAT paid by the manufacturer.

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Answer 1

Answer:

VAT=Output tax-Input tax

Intput tax=4% of 60,000=

100

4

×60000=Rs.2400

Output tax=12.5% of 92000=

100

12.5

×92000=11500

VAT=11500−2400=Rs.9100

Answer 2

$\huge\bold\blue{answer}$

Given:Cost price of a raw material = ₹ 40000

Rate of sales tax = 4%

Amount of sales tax = (40000×4)/100 = ₹1600

Manufacturer sells the stock at = ₹ 78000

Rate of sales tax = 7.5%

Amount of sales tax = (78000×7.5)/100

=₹ 5850∴

VAT paid by the manufacturer = ₹ 5850 -₹1600

= ₹4250