Calculate Indirect Taxes from the following data NDP at FC ₹ 55,915 Subsidies ₹ 1,540

Anurag Pathak24.20K November 12, 2023 0 Comments

Calculate Indirect Taxes from the following data:

Particulars	₹ in Crores
(i) NDP at FC	55,915
(ii) Subsidies	1,540
(iii) Factor income from abroad	625
(iv) Consumption of Fixed Capital	1,625
(v) Factor income to abroad	865
(vi) GNP at MP	58,350

Ans: Indirect Taxes = ₹ 2,590 Crores

Solution:-

GNP at FC = NDP at FC + Consumption of Fixed capital + (Factor income from abroad – Factor income to abroad)

GNP at FC = (i) + (iv) + [(iii) – (v)]

GNP at FC = ₹ 55,915 + ₹ 1,625 + [₹ 625 – ₹ 865]

GNP at FC = ₹ 57,300

Net Indirect Taxes = GNP at MP – GNP at FC

Net Indirect Taxes = ₹ 58,350 – ₹ 57,300

Net Indirect Taxes = ₹ 1050

Net Indirect Taxes = Indirect Taxes – Subsidies

₹ 1050 = Indirect Taxes – ₹ 1,540

Indirect Taxes = ₹ 1,540 + ₹ 1050

Indirect Taxes = ₹ 2590 Crores