An importer imported an air conditioner from India paying total amount Rs 100,000. No VAT was paid while import. Importer sold to retailer before…
BBA Taxation and Auditing · 2024 · Solved Question with Answer
An importer imported an air conditioner from India paying total amount Rs 100,000. No VAT was paid while import. Importer sold to retailer before reaching to final consumer. Both Importer and retailer incurred Rs 5000 for administrative and packaging cost. Profit charged by importer 20% on their cost price but retailer charged 20% on sales price.
Required:
(a) Cost price for the final consumer.
(b) Amount of VAT collected by the government at each level of sales.