05-26-2011, 09:19 PM
when the amount includes both the value of supply and the sales tax too, in that case you can calculate the sales tax by multiplying the amount with tax fraction. e.g. if you are told that the goods purchased for Rs. 100,000 includes the amount of sales tax.then by multiplying this 100,000 with tax fraction (17/117) you can work out the amount of sales tax in Rs. 100,000 i,e 14,530.
