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Net value added tax factor cost from the following data opening stock 10 consumption of fixed capital 20 sales 200 excise duty 15 purchase of raw material 80 closing stock 30 sales tax 5 purchase of services from other form 10?
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Net value added tax factor cost from the following data opening stock ...
Net Value Added Tax (VAT) at Factor Cost Calculation
Introduction:
Net Value Added Tax (VAT) at Factor Cost is a measure used to calculate the value of VAT within an economy. It takes into account various factors such as opening stock, consumption of fixed capital, sales, excise duty, purchase of raw material, closing stock, sales tax, and purchase of services from other firms. Let's break down the calculation step by step.
Step 1: Calculate the Value of Output (Sales):
The first step is to calculate the value of output, which is the sales made by the company. In this case, the sales amount is given as 200.
Step 2: Calculate the Value of Input (Purchase of Raw Material):
Next, we need to calculate the value of input, which is the purchase of raw material. From the given data, the purchase of raw material is stated as 80.
Step 3: Calculate the Value of Direct Taxes (Excise Duty and Sales Tax):
To calculate the value of direct taxes, we need to consider both excise duty and sales tax. From the data provided, the excise duty is given as 15 and the sales tax is given as 5.
Step 4: Calculate the Value of Indirect Taxes (VAT):
The value of indirect taxes, which is the VAT, can be calculated by subtracting the value of input from the value of output. Therefore, the VAT can be determined as follows:
VAT = Value of Output - Value of Input
VAT = 200 - 80
VAT = 120
Step 5: Calculate the Net Value Added Tax at Factor Cost:
To calculate the net value added tax at factor cost, we need to consider the opening stock, consumption of fixed capital, closing stock, and purchase of services from other firms.
Opening Stock: The opening stock is given as 10.
Consumption of Fixed Capital: The consumption of fixed capital is given as 20.
Closing Stock: The closing stock is given as 30.
Purchase of Services from Other Firms: The purchase of services from other firms is given as 10.
Net Value Added Tax at Factor Cost = VAT - (Opening Stock + Consumption of Fixed Capital - Closing Stock - Purchase of Services from Other Firms)
Net Value Added Tax at Factor Cost = 120 - (10 + 20 - 30 - 10)
Net Value Added Tax at Factor Cost = 120 - (-10)
Net Value Added Tax at Factor Cost = 130
Conclusion:
The net value added tax at factor cost, based on the given data, is 130. This calculation takes into account various factors such as opening stock, consumption of fixed capital, sales, excise duty, purchase of raw material, closing stock, sales tax, and purchase of services from other firms. It provides a measure of the VAT within the economy and helps in assessing the overall tax burden.
Introduction:
Net Value Added Tax (VAT) at Factor Cost is a measure used to calculate the value of VAT within an economy. It takes into account various factors such as opening stock, consumption of fixed capital, sales, excise duty, purchase of raw material, closing stock, sales tax, and purchase of services from other firms. Let's break down the calculation step by step.
Step 1: Calculate the Value of Output (Sales):
The first step is to calculate the value of output, which is the sales made by the company. In this case, the sales amount is given as 200.
Step 2: Calculate the Value of Input (Purchase of Raw Material):
Next, we need to calculate the value of input, which is the purchase of raw material. From the given data, the purchase of raw material is stated as 80.
Step 3: Calculate the Value of Direct Taxes (Excise Duty and Sales Tax):
To calculate the value of direct taxes, we need to consider both excise duty and sales tax. From the data provided, the excise duty is given as 15 and the sales tax is given as 5.
Step 4: Calculate the Value of Indirect Taxes (VAT):
The value of indirect taxes, which is the VAT, can be calculated by subtracting the value of input from the value of output. Therefore, the VAT can be determined as follows:
VAT = Value of Output - Value of Input
VAT = 200 - 80
VAT = 120
Step 5: Calculate the Net Value Added Tax at Factor Cost:
To calculate the net value added tax at factor cost, we need to consider the opening stock, consumption of fixed capital, closing stock, and purchase of services from other firms.
Opening Stock: The opening stock is given as 10.
Consumption of Fixed Capital: The consumption of fixed capital is given as 20.
Closing Stock: The closing stock is given as 30.
Purchase of Services from Other Firms: The purchase of services from other firms is given as 10.
Net Value Added Tax at Factor Cost = VAT - (Opening Stock + Consumption of Fixed Capital - Closing Stock - Purchase of Services from Other Firms)
Net Value Added Tax at Factor Cost = 120 - (10 + 20 - 30 - 10)
Net Value Added Tax at Factor Cost = 120 - (-10)
Net Value Added Tax at Factor Cost = 130
Conclusion:
The net value added tax at factor cost, based on the given data, is 130. This calculation takes into account various factors such as opening stock, consumption of fixed capital, sales, excise duty, purchase of raw material, closing stock, sales tax, and purchase of services from other firms. It provides a measure of the VAT within the economy and helps in assessing the overall tax burden.
Community Answer
Net value added tax factor cost from the following data opening stock ...
NVA at fc = 200 - 90 + 20 - (15+5)- 20
= 90.
= 90.
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Net value added tax factor cost from the following data opening stock 10 consumption of fixed capital 20 sales 200 excise duty 15 purchase of raw material 80 closing stock 30 sales tax 5 purchase of services from other form 10?
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Net value added tax factor cost from the following data opening stock 10 consumption of fixed capital 20 sales 200 excise duty 15 purchase of raw material 80 closing stock 30 sales tax 5 purchase of services from other form 10? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Net value added tax factor cost from the following data opening stock 10 consumption of fixed capital 20 sales 200 excise duty 15 purchase of raw material 80 closing stock 30 sales tax 5 purchase of services from other form 10? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Net value added tax factor cost from the following data opening stock 10 consumption of fixed capital 20 sales 200 excise duty 15 purchase of raw material 80 closing stock 30 sales tax 5 purchase of services from other form 10?.
Net value added tax factor cost from the following data opening stock 10 consumption of fixed capital 20 sales 200 excise duty 15 purchase of raw material 80 closing stock 30 sales tax 5 purchase of services from other form 10? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Net value added tax factor cost from the following data opening stock 10 consumption of fixed capital 20 sales 200 excise duty 15 purchase of raw material 80 closing stock 30 sales tax 5 purchase of services from other form 10? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Net value added tax factor cost from the following data opening stock 10 consumption of fixed capital 20 sales 200 excise duty 15 purchase of raw material 80 closing stock 30 sales tax 5 purchase of services from other form 10?.
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