Ajinkya Electronic Systems, a company in India that manufactures many different electronic products, has to purchase goods and services from a variety of suppliers (wire, diodes, LED displays, plastic components, etc.). The table below shows several suppliers and the VAT tax rates associated with each. It also shows the purchases (in $1000 units) that Ajinkya made (before tax) from each supplier in the previous accounting period. Assume Ajinkya’s sales to end users were $9.2 million and Ajinkya’s products carry a 15% VAT. Supplier VAT Rate, % Purchases by Ajinkya, $1000 A 4.0 350 B 12.5 870 C 12.5 620 D 21.3 90 E 32.6 50 How much VAT did supplier C collect? How much tax did Ajinkya keep from the tax it collected based on the purchases it made from supplier A? What was the total amount of VAT paid by Ajinkya to the suppliers?
Ajinkya Electronic Systems, a company in India that manufactures many different electronic products, has to purchase goods and services from a variety of suppliers (wire, diodes, LED displays, plastic components, etc.). The table below shows several suppliers and the VAT tax rates associated with each. It also shows the purchases (in $1000 units) that Ajinkya made (before tax) from each supplier in the previous accounting period. Assume Ajinkya’s sales to end users were $9.2 million and Ajinkya’s products carry a 15% VAT. Supplier VAT Rate, % Purchases by Ajinkya, $1000 A 4.0 350 B 12.5 870 C 12.5 620 D 21.3 90 E 32.6 50 How much VAT did supplier C collect? How much tax did Ajinkya keep from the tax it collected based on the purchases it made from supplier A? What was the total amount of VAT paid by Ajinkya to the suppliers?
Chapter16: Multistate Corporate Taxation
Section: Chapter Questions
Problem 43P
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Ajinkya Electronic Systems, a company in India that manufactures many different electronic products, has to purchase goods and services from a variety of suppliers (wire, diodes, LED displays, plastic components, etc.). The table below shows several suppliers and the VAT tax rates associated with each. It also shows the purchases (in $1000 units) that Ajinkya made (before tax) from each supplier in the previous accounting period. Assume Ajinkya’s sales to end users were $9.2 million and Ajinkya’s products carry a 15% VAT.
|
Supplier |
VAT Rate, % |
Purchases by Ajinkya, $1000 |
|
A |
4.0 |
350 |
|
B |
12.5 |
870 |
|
C |
12.5 |
620 |
|
D |
21.3 |
90 |
|
E |
32.6 |
50 |
- How much VAT did supplier C collect?
- How much tax did Ajinkya keep from the tax it collected based on the purchases it made from supplier A?
- What was the total amount of VAT paid by Ajinkya to the suppliers?
- What was the average VAT rate paid by Ajinkya in purchasing goods and services?
- What was the amount of VAT Ajinkya sent to the Treasury of India?
- What was the total amount of VAT collected by the Treasury of India from Ajinkya and Ajinkya’s suppliers?
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