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    Output Vat

    Uploaded by

    Bhanumati Bhunjun
    The document summarizes the VAT calculations for a business with sales of Rs. 1,900,000. It calculates the output VAT as Rs. 270,750 and lists the input VAT from various business expenses totaling Rs. 243,972. The net VAT payable is Rs. 26,778. It also advises that the business owner should apply for VAT registration now since their turnover exceeds Rs. 6 million and outlines the procedure for applying which involves obtaining and submitting the correct form to the director general.

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    Output Vat

    Uploaded by

    Bhanumati Bhunjun
    11 views2 pages
    The document summarizes the VAT calculations for a business with sales of Rs. 1,900,000. It calculates the output VAT as Rs. 270,750 and lists the input VAT from various business expenses totaling Rs. 243,972. The net VAT payable is Rs. 26,778. It also advises that the business owner should apply for VAT registration now since their turnover exceeds Rs. 6 million and outlines the procedure for applying which involves obtaining and submitting the correct form to the director general.

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    vat.docx

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    The document summarizes the VAT calculations for a business with sales of Rs. 1,900,000. It calculates the output VAT as Rs. 270,750 and lists the input VAT from various business expenses totaling Rs. 243,972. The net VAT payable is Rs. 26,778. It also advises that the business owner should apply for VAT registration now since their turnover exceeds Rs. 6 million and outlines the procedure for applying which involves obtaining and submitting the correct form to the director general.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    11 views2 pages

    Output Vat

    Uploaded by

    Bhanumati Bhunjun
    The document summarizes the VAT calculations for a business with sales of Rs. 1,900,000. It calculates the output VAT as Rs. 270,750 and lists the input VAT from various business expenses totaling Rs. 243,972. The net VAT payable is Rs. 26,778. It also advises that the business owner should apply for VAT registration now since their turnover exceeds Rs. 6 million and outlines the procedure for applying which involves obtaining and submitting the correct form to the director general.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    3.

    (a)

    Output vat
    Sales invoices

    15%*(0.95*1,900,00) = 270,750

    Input vat
    Purchases
    (15/115)*1,050,000= 136,957
    Production
    (15/115)*600,00= 78,261
    Laptop
    (15/115)*60,000=7,826
    Bad debt
    (15/115)*40,000= 5,217
    Repair
    (15/115)* (0.7*50,000)=4,565
    Telephone bill
    (15/115)* (0.95*35,000)= 4,337
    Electricity bill
    (15/115)* (0.95*55,000) = 6,815
    Total input vat = 243972

    Total vat payable ; 270,750 – 243,972 = rs 26,778

    (b) Yes, he should apply for VAT registration now because his turnover exceeds 6 million
    rupees.
    The procedure to be followed is :
    He should obtain a form of VATA1 from the MRA , then the form must be correctly filled and
    submitted to the director general. After the director general is satisfied that he meets the full
    requirements, he will be issued a certificate of registration. If the limit increases, he can also
    deregister later on.

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