Calculate Net Value Added at Factor Cost Consumption of fixed Capital (₹) 600 Goods and Services Tax or GST* (₹) 400
Calculate Net Value Added at Factor Cost:
| Particulars | |
| (i) Consumption of fixed Capital (₹) | 600 |
| (ii) Goods and Services Tax or GST* (₹) | 400 |
| (iii) Output sold (units) | 2,000 |
| (iv) Price per unit of output (₹) | 10 |
| (v) Net Change in stocks (₹) | (-) 50 |
| (vi) Intermediate cost (₹) | 10,000 |
| (vii) Subsidiy (₹) | 500 |
Ans – ₹ 9,450
Note:-
Import duty given in the quesiton earlier has been replaced by GST
Anurag Pathak Changed status to publish December 21, 2023
Solution:-
Sales = Output Sold × Price per unit
Sales = ₹ 2,000 × ₹ 10
Sales – ₹ 20,000
Value of Output = Sales + Net Change in stocks
Value of Output = ₹ 20,000 + ₹ (-) 50
Value of Output = ₹ 19,950
Gross Value Added at Market Price = Value of Output – Intermediate Cost
Gross Value Added at Market Price = ₹ 19,950 – ₹ 10,000
Gross Value Added at Market Price – ₹ 9,950
Net Value Added at Factor Cost = Gross Value Added at Market Price – Consumption of fixed Capital – Net indirect tax (GST – Subsidy)
Net Value Added at Factor Cost = ₹ 9,950 – ₹ 600 – (₹ 400 – ₹ 500)
Net Value Added at Factor Cost = ₹ 9,450
Anurag Pathak Changed status to publish November 11, 2023
