Which of the following is not correct about VAT.

The difference of tax recovered on sale value and paid on purchase is taken as tax.

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It is not in addition to existing tax but replacement of sales tax.

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VAT is collected by Merchant/Wholeseller/Trader

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Value is added at each transfer of goods from the original manufacturer to the retailer.

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Solution

The correct option is C
VAT is collected by Merchant/Wholeseller/Trader

Vat is collected by Government. All points are correct.

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A manufacturer produces a good and sells it to a wholesaler at a price of Rs.500 and wholesaler sells it to retailer at a price of Rs.600. The retailer sells it to the customer at a price of Rs.800. If the sales tax charged is $R s 5 %$ . Find the total tax charged by the government under VAT.

A manufacturing company M sells a computer to a distributor for ₹ 33,000 including sales tax. The distributor D sells it to a retailer R for ₹ 35,000 excluding tax and the retailer sells it to a customer for ₹ 36,000 plus tax. If the rate of sales tax (under VAT ) is 10 % find

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Which of the following is not correct about VAT.

The correct option is C VAT is collected by Merchant/Wholeseller/Trader Vat is collected by Government. All points are correct.

The correct option is C
VAT is collected by Merchant/Wholeseller/Trader

Vat is collected by Government. All points are correct.