Wednesday, August 3, 2016
An Example For example if a registered person has bought goods that cost Rs 100 and he/she is charged Rs 15 as sales tax (input tax) at the rate of 15% his total purchase price becomes Rs 115. If he/she sells the goods for Rs 200 and charges Rs 30 @ 15%(as output tax) his total sale price becomes Rs 230. Output tax (15% of 200) = Rs. 30 Less: Input tax (15% of 100) = Rs. 15 Tax due (Rs. 30 minus Rs. 15) = Rs. 15
