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Class 10 > Learn Mathematics > A manufacturer buys raw goods for Rs 4500 and pays...
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A manufacturer buys raw goods for Rs 4500 and pays 10% tax. He sells the ready stocks for Rs 9000. Find the VAT paid by manufacturer?

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Learn Mathematics +2 Class IX-X Tuition Sales Tax and VAT

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Commerce subjects teacher with 7 yrs experience

Input VAT paid by manufacturer is = (4500 * 10%) =Rs.450 Output VAT collected by manufacturer is = (9000 * 10%) = Rs. 900 (Assuming same rate of tax for output and Input) Net amount of VAT to be paid by manufacturer = (900 - 450) = Rs. 450
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