Suppose a shopkeepers buys inputs worth $R s . 2, 00, 000$ and his sales are worth $R s . 4, 00, 000$ in a month. The input tax rate is $4$ % and output tax rate is $10$ %. What is value added tax here after set off of input tax credit?

R s . 32, 000

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R s . 8000

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R s . 4, 000

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R s . 20, 000

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Solution

The correct option is A $R s . 32, 000$
Output tax $= 10$ % of $400000 = R s . 40000$ ;
Input tax $= 4$ % of $200000 = R s . 8000$
Hence, Value Added Tax $= 40000 - 8000 = R s . 32000$ .

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Q. A person purchases the following items from a mall for which the sales tax is mentioned against:
a) Stationary materials for

R s . 250

and sales tax of

4 %

thereon.b) Electronic goods worth

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and sales tax of

10 %

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c) Groceries worth

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on which sales tax of

3 %

is levied.
d) Medicines worth

R s . 200

with the sales tax of

6 %

.
Find the bill amount for each item.

A person buys electronic goods worth Rs 10,000 for which the sales tax is 4% and other material worth Rs 15,000 for which the sales tax is 6%. He manufactures a gadget using all these and sells it at 15% profit. What is his selling price?

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Suppose a shopkeepers buys inputs worth Rs.2,00,000 and his sales are worth Rs.4,00,000 in a month. The input tax rate is 4% and output tax rate is 10%. What is value added tax here after set off of input tax credit?

The correct option is A Rs.32,000Output tax =10% of 400000=Rs.40000; Input tax =4% of 200000=Rs.8000 Hence, Value Added Tax =40000−8000=Rs.32000.

Suppose a shopkeepers buys inputs worth $R s . 2, 00, 000$ and his sales are worth $R s . 4, 00, 000$ in a month. The input tax rate is $4$ % and output tax rate is $10$ %. What is value added tax here after set off of input tax credit?

The correct option is A $R s . 32, 000$
Output tax $= 10$ % of $400000 = R s . 40000$ ;
Input tax $= 4$ % of $200000 = R s . 8000$
Hence, Value Added Tax $= 40000 - 8000 = R s . 32000$ .