Monday, February 20, 2012

WHAT IS THE TAX FRACTION AND HOW IS IT CALCULATED? (https://www.apct.gov.in/)

WHAT IS THE TAX FRACTION AND HOW IS IT CALCULATED? a) The tax fraction is a formula, which calculates the tax element where goods are sold at tax inclusive prices, i.e., where the VAT is not shown separately.

It is calculated by reference to the rate of VAT currently specified in the law. It is calculated from the formula :
R .
R+100
R is the tax rate.
For example with a rate of 4 percent the fraction is:
4 .= 4 = 1 .
4 + 100 104 26
If the rate were 12.5% percent, the fraction would be:
12.5 .= 12.5 = 1 

12.5 +100 112.5 9|

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