Laxman Traders paid ₹ 70,000 as VAT at 5% on raw materials purchased within the State. It manufactured finished goods and transferred 50% of the finished goods to its branch located outside the State. The balance goods w
CS Executive · Tax Laws and Practice · PYQS · June 2017
Laxman Traders paid ₹ 70,000 as VAT at 5% on raw materials purchased within the State. It manufactured finished goods and transferred 50% of the finished goods to its branch located outside the State. The balance goods were sold within the State with VAT collection of ₹ 50,000. The VAT liability after input credit would be :
Answer & Explanation:
The official key records '*'. This question is excluded from automatic grading because the source does not supply an unambiguous valid choice. Official source note: None of the options are found to be correct. The correct answer is Nil with input Tax Credit ₹ 60 00. Note : The inconsistency or ambiguity in the Question(s), if any, is/are taken care of while evalua ting the answer sheets.
Topics: Value Added Tax (VAT)
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