VAT CST ADJUSTMENT, VAT + CST

[Sajid Ahmed]

Please solve this, how much tax to be payable:

Purchase from URD for Rs.5,00,000

Purchase from RD   for Rs.1,00,000

Sales against C Form for Rs.10,00,000

Sales VAT 14.5 percent        for Rs.1,00,000

Exempted Sales        for Rs.50,000

Please guide how to calculate ITC and tax payable.
 

Posts / Replies

[Pradeep Khatri]

You would have to pay tax on Rs. 50000/- as these are exempted sales and you can avail the Input tax credit on purchase from RD provided purchases from URD is used in manufacturing of finished goods are sold on payment of VAT/CST.