Question

Fatima, the proprietor of a firm paid Rs. $1,250$ tax on purchase and collected Rs. $1,475$ tax on sale. Find the M-VAT payable by Fatima.

Answer 1

Tax paid at the time of purchase $=$ Rs. $1,250$
Tax collected at the time of sale $=$ Rs. $1,475$
M-VAT payable by Fatima $=$ Tax collected on sale $-$ Tax paid on purchase
$=(1475-1250)$
$=225$
Hence, M-VAT payable by Fatima is Rs. $225$.