who to colculate vat?

Question

sent details of vat calculation furmula and details

Answer 1

How to add VAT (Value Added Tax) to a price


This is the calculation you need to use when:
you know a price before tax (the Net price)
but want to find out the price after tax (the Gross price).

Taking-off VAT (Tax) from a price
This is the calculation you need to use when:
you know a price after tax (the Gross price)
but want to find out the price before tax (the Net price).


If we assume that VAT is at a rate of 17.5%...

Gross price
divided by
1.175
= Net price

Price after tax
divided by
1.175
= Price before tax



In the equation above, 1.175 is the divisor. To get the divisor, we need to convert the tax rate into a fraction by dividing it by 100 and then add the resulting fraction to 1.

So, if we assume that VAT is at a rate of 17.5%,
we will need to divide 17.5 by 100, giving 0.175, then add 1.
Thus the divisor is 0.175 +1 = 1.175

So now let's assume that a tax is at a new rate of 2.5%...

First, get the divisor :
2.5 100 = 0.025
0.025 + 1 = 1.025

The divisor is 1.025

So...

Gross price
divided by
1.025
= Net price

Price after tax
divided by
1.025
= Price before tax

E.g :

Rs 102.50
divided by
1.025
=Rs100

Rs 102.50 inc Tax


= Rs100 + Tax




If we assume that VAT is at a rate of 17.5%...

Net price
multiplied by
1.175
= Gross price

Price before tax
multiplied by
1.175
= Price after tax



In the equation above, 1.175 is the multiplier. To get the multiplier, we need to convert the tax rate into a fraction by dividing it by 100 and then add the resulting fraction to 1.

So, if we assume that VAT is at a rate of 17.5%,
we will need to divide 17.5 by 100, giving 0.175, then add 1.
Thus the multiplier is 0.175 +1 = 1.175

So now let's assume that a tax is at a new rate of 2.5%...

First, get the multiplier :
2.5 100 = 0.025
0.025 + 1 = 1.025

The multiplier is 1.025

So...

Net price
multiplied by
1.025
= Gross price

Price before tax
multiplied by
1.025
= Price after tax

E.g :
Rs100
multiplied by
1.025
= RS 102.50

RS 100 + Tax


= Rs102.50 inc Tax



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Answer 2

first u decide that wehther u come under vat. there are some limitations to come under vat. u first see annual turnover . type of bussiness.

if u come under the vat and if u want any tax ewductions try the site to post ur annual returns and get the discounts

Answer 3

u can calculate the vat using the software which will available in the site.

Answer 4

hi
there is a simple way to calculate taxes
when i am surfing the web i found a special service which provides free tax calculations just go through it

Answer 5

VAT IS calculated by sellor.

Answer 6

Click on the link below for all about VAT
http://www.allindiantaxes.com/vat.php