Help required - related to service tax

[sunilyo]

Hey guys,

Need help with the following calculation. Let me explain.

Gross amount (with taxes) = Rs.13500
Nett amount (without taxes) = Rs.12780

1. Amount A - 60% of Nett amount = Rs.7668
2. Service tax 7.2% on A = Rs.552.09
3. Edu. Cess .14% on A = Rs.10.7
4. Higher Sec. Cess .07% on A = Rs.8.9

5. Amount B - 40% of Nett amount = Rs.5112
6. VAT 3% on B = Rs.153.36


So Rs.13500 is the sum of all values from 1 to 6 above. Calculating these figures is simple.

My query is how to calculate the Nett amount i.e. Rs.12780 here since all the calculation is based on this value and i have been unsuccessful in getting this. Is there a formulae for this one?

 

[letmein]

Shouldn't No. 3 and No.4 be calculated at 3% of Service Tax? In which case, 3% of ST would come to be Rs. 16.56 instead of the Rs 19.6 calculated now...

I'm probably wrong though...

 

[sunilyo]

Shouldn't No. 3 and No.4 be calculated at 3% of Service Tax? In which case, 3% of ST would come to be Rs. 16.56 instead of the Rs 19.6 calculated now...

I'm probably wrong though...

I have no idea of this. This is the format that i got from the boss. I only have to make the final invoices based on the above calculation so instead of manually figuring out the value i want to automate it using a formulae in excel.

 

[Lord Nemesis]

I don't understand the question clearly, are you trying to reverse calculate the net and taxes given the gross amount?

If that is the case, you can build a Algebraic equation for it and solve it to get a formula for calculating nett from gross.

Taking the example of your calculation where two amounts a and b are involved.

=> a = n * 0.6
=> b = n * 0.4
=> g = a * 1.0741 + b * 1.03

=> g = n * 1.05646
=> n = g / 1.05646

So if g = 13500, then n = 12778.52
a = 7667.11, b = 5111.41

 

[sunilyo]

I don't understand the question clearly, are you trying to reverse calculate the net and taxes given the gross amount?

If that is the case, you can build a Algebraic equation for it and solve it to get a formula for calculating nett from gross.

Taking the example of your calculation where two amounts a and b are involved.

Lord Nemesis, you are a genius. :hail:Thank you for this. Sorry if my query wasn't clear but this equation has answered that. I have noted this down for future reference.

Just one last question how did you arrive at 1.05646 ? :ashamed:

 

[Lord Nemesis]

LOL.. No Rocket Science there. Its just 5th or 6th standard Math. :lol:

Gross calculation for A

=> Service tax = a * 0.072
=> Edu. Cess = a * 0.0014
=> Higher Edu. Cess = a * 0.0007

so

=> g1 = a + (a * 0.072) + (a * 0.0014) + (a * 0.0007)
=> g1 = a * 1.0741

Gross calculation for B

=> VAT = b * 0.03

so

=> g2 = b + (b * 0.03)
=> g2 = b * 1.03

finally
=> g = a * 1.0741 + b * 1.03

but as you said a = n * 0.6, b= n * 0.4, replacing

=> g = ((n * 0.6) * 1.0741) + ((n * 0.4) * 1.03)

=> g = n * 1.05646