|
|
| *Ostroff, Fair and Company>>>India Taxes |
Wanted to knoe the correct method of calculation of selling price inclusive of vat? |
i m running a unit run canteen in goa for that we r getting the grocery and liquor items from csd bangalore. for liquor items we pay excise duty(Rs. 15/bottle) and for getting the items we pay transportaion charges(Rs. 15000/per trip). since these amounts are very high we want to include this into selling price but now 20% vat is applicable on liquor and we charge 10% profit on the liquor. so wanted to know how to calculate the selling price inclusive of the all the factors ie excise, transportation, profit and vat. please reply with the example. thank you take the following in consideration first a = cost price of the product before freight and VAT but after excise duty b = freight = transport cost for each item, that is total transportaion divided by the number of items c = VAT = just take the VAT component from the purchase price d = sale price = a + b + profit + 20%(vat) e = what u need to pay the sales tax department is the (20%(vat) - VAT component on the purchase price) if a = 100-16.67 = 83.33. b = 15 = 15000/1000 freight Rs,15000/- to transport 1000 pieces c = 16.67 , vat @ 20% that is (100/120*20) d = 83.33 + 15 = 98.33, 98.33 + 20%(19.67) = 118. Rs.118/- e = 19.67 - 16.67 = 3/- rupees 3 per piece only Include all the cost like transportation, excise and vat to the ur cost price of liquor. The transportation cost can be apportioned on the basis of total quantity purchased. From that cost reduce any duty credit you may be eligible for, that is VAT/Excise credit. Then add ur profit margin, that way you will arrive at ur selling price. Eg- Unit cost of liquor+ transportation+ excise+ vat - duty credit ( vat) +profit margin= Selling Price |
| Tags |
| United Kingdom Taxes Spain Taxes Singapore Taxes Mexico Taxes Ireland Taxes India Taxes Germany Taxes Canada Taxes Australia Taxes Small Business |
Finance Categories--Copyright/IP Policy--Contact Webmaster |