Multiple choice

     
Item Name VAT Quantity Rate
Amul Milk Exempt 50 15
Drawing Books 5% 80 50
Exercise Books 12.5% 40 25

Calculate total Input VAT when the goods given in the table are purchased.

  1. Rs. 320

  2. Rs. 330

  3. Rs. 325

  4. None of these

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

It is Rs 325

No Vat is charged on Amul Milk
                            
Input Vat on Drawing Books - Qty X Rate - 80 X 50 = Rs 4,000 X 5 / 100 = Rs 200
 
Input Vat on Exercise Books - Qty X Rate - 40 X 25 = Rs 1,000 X 12.5 / 100 = Rs 125
 
So Total Input Vat = Rs 200 + Rs 125 = Rs 325

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