# 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Import duty given in the quesiton earlier has been replaced by GST

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**