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On the basis of following data, prove that ‘Net Value Added at Factor Cost’ is equal to ‘Income Generated’.

Particulars ₹ in Crores
(i) Addition to stock 1,000
(ii) Sales 10,000
(iii) Net indirect taxes 800
(iv) Purchase of raw material 1,650
(v) Expenses on Power 850
(vi) Consumption of fixed capital 500
(vii) Rent 700
(viii) Compensation of Employees 3,500
(ix) Interest 1,000
(x) Dividend 1,500
(xi) Corporate gains tax 300
(xii) Undistributed profit 200

Ans – Net Value Added at Factor Cost = Income Generated = ₹ 7,200 Crores

Anurag Pathak Changed status to publish November 10, 2023