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+--- Thread: What is Tax Fraction (/showthread.php?tid=9906)
What is Tax Fraction - bashi - 05-24-2011
Kindly Guide what is Tax Friction & where we will use it
(36) âtax fractionâ means the amount worked out in accordance with the following
formula-
a / 100 + a
('a' is the rate of tax specified in section 3);
17/100+17
=0.145
- amerrafique - 05-26-2011
when the amount includes both the value of supply and the sales tax too, in that case you can calculate the sales tax by multiplying the amount with tax fraction. e.g. if you are told that the goods purchased for Rs. 100,000 includes the amount of sales tax.then by multiplying this 100,000 with tax fraction (17/117) you can work out the amount of sales tax in Rs. 100,000 i,e 14,530.
- bashi - 05-26-2011
Thank You soo much
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by amerrafique</i>
<br />when the amount includes both the value of supply and the sales tax too, in that case you can calculate the sales tax by multiplying the amount with tax fraction. e.g. if you are told that the goods purchased for Rs. 100,000 includes the amount of sales tax.then by multiplying this 100,000 with tax fraction (17/117) you can work out the amount of sales tax in Rs. 100,000 i,e 14,530.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">