Understanding VAT Calculation in India: Can Anyone Explain the Process?

Dear friends,

I am working in a corporate office as an accountant. I want to know the VAT calculation procedure that is implemented in India.

Please clarify my query.

Thanks & regards,
Asif

Sales Invoice AMT: 100
VAT: 12.5%
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Total: 112.5

Purchase Bill AMT: 50
VAT: 12.5%
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Total: 56.25

VAT Calculation:
Sales VAT Payable: Rs. 12.5
Purchase Input VAT: Rs. 6.25
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VAT Payable: Rs. 6.25