Calculate Net Value added at Factor Cost from following data Purchase of machinery to be used in the production unit ₹ 100
Calculate Net Value added at Factor Cost from following data:
| Particulars | ₹ in Crores |
| (i) Purchase of machinery to be used in the production unit | 100 |
| (ii) Sales | 200 |
| (iii) Intermediate Costs | 90 |
| (iv) Indirect taxes | 12 |
| (v) Change in Stock | 10 |
| (vi) Goods and Services Tax | 6 |
| (vii) Stock of raw material | 5 |
Ans: Net Value added at Factor Cost = ₹ 108 Crores
Anurag Pathak Changed status to publish December 21, 2023
Solution:-
Value of Output = Sales + Change in Stock
Value of Output = ₹ 200 + ₹ 10
Value of Output = ₹ 210 Crores
Gross Value added at MP = Value of Output – Intermediate Costs
Gross Value added at MP = ₹ 210 – ₹ 90
Gross Value added at MP = ₹ 120 Crores
Net Value added at Factor Cost = Gross Value added at MP – Depreciation – Indirect taxes
Net Value added at Factor Cost = ₹ 120 – ₹ 0 – ₹ 12
Net Value added at Factor Cost = ₹ 108 Crores
Anurag Pathak Changed status to publish November 11, 2023
