Q1

 A LTD Purchase 100000 Excise 12.5% 12500 Total 112500 Vat 5% (of Total) 5625 Grand Total 118125
 X LTD Sale 160000 vat 5% 8000 168000

What is Vat Payable?

-a-

 Particulars Amount Output Vat 8000 Less Input Vat 5625 Vat Payable 2375

-ea-

#### Excise on Purchases

Excise is a duty charged on Manufacturing

If we purchase goods from a Manufacturer (Factory),they charge both excise and vat

However,input is available only of vat  and not of excise

For Vat Dealers,purchase amount is amount including excise i.e Rs 112500

Q2

 A LTD B LTD C LTD Purchase 60000 Purchase 60000 Purchase 45000 Excise 12.5% 7500 vat 5% 3000 CST 2% 900 Total 67500 63000 45900 Vat 5% (of Total) 3375 Grand Total 70875
 X LTD X LTD Sale 220000 Sale 180000 vat 5% 11000 CST 2% 3600 231000 183600

What is Vat /CST Payable?

-a-

 Particulars Amount Particulars Amount Output Vat 11000 Output CST 3600 Less Input Vat 6375 Vat Payable 4625 CST Payable 3600 or Vat Credit Less Less Adjust with CST Adjsut with Vat Balance Vat Credit Balance CST Payable
1. Tax Practical
2. Practical VAT CST
Practical VAT CST