If Raw Materials Input Value is Rs. 5,00,000 subject to 10% VAT, and Sale Value of Output is Rs. 7,50,000 subject to 4% VAT, then VAT Payable by the Dealer will be ___________.

Rs. 50,000

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Rs.30,000

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Rs. 10,000

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Rs. Nil

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Solution

The correct option is D Rs. Nil
If Raw Materials Input Value is Rs. 5,00,000 subject to 10% VAT, and Sale Value of Output is Rs. 7,50,000 subject to 4% VAT, then VAT Payable by the Dealer will be Rs Nil as VAT should not be payable by the Dealer. VAT stands for Value Added Tax.

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If Raw Materials Input Value is Rs. 5,00,000 subject to 10% VAT, and Sale Value of Output is Rs. 7,50,000 subject to 4% VAT, then VAT Payable by the Dealer will be ___________.

The correct option is D Rs. NilIf Raw Materials Input Value is Rs. 5,00,000 subject to 10% VAT, and Sale Value of Output is Rs. 7,50,000 subject to 4% VAT, then VAT Payable by the Dealer will be Rs Nil as VAT should not be payable by the Dealer. VAT stands for Value Added Tax.

The correct option is D Rs. Nil
If Raw Materials Input Value is Rs. 5,00,000 subject to 10% VAT, and Sale Value of Output is Rs. 7,50,000 subject to 4% VAT, then VAT Payable by the Dealer will be Rs Nil as VAT should not be payable by the Dealer. VAT stands for Value Added Tax.