Question: How much tax did Ajinkya keep from the tax it collected based on the purchases it made from supplier A? Ajinkya Electronic Systems, a company
How much tax did Ajinkya keep from the tax it collected based on the purchases it made from supplier A?
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 rates associated with each. It also shows the purchases in $1000 units that Ajinkya made (before taxes) from each supplier in the previous accounting period. Ajinkya's sales to end users was $9.2 million, and Ajinkya's products carry a VAT of12.5%.
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 rates associated with each. It also shows the purchases in $1000 units that Ajinkya made (before taxes) from each supplier in the previous accounting period. Ajinkya's sales to end users was $9.2 million, and Ajinkya's products carry a VAT of12.5%.
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Purchases by Ajinkya, $1000 Supplier VAT Rate, % 4.0 12.5 12.5 21.3 32.6 350 870 620 90 50
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