VAT and sales tax are different concepts and levied separately, hence kept separate. Unlike sales tax calculations which are quite simple and easy, VAT is multi level tax and more complex to be calculated. Sales tax is calculated on the final price of the article at the time of purchase, hence has a simple calculation.
For example, if Mr. Awasthi buys a box of biscuits costing Rs 600with a sales tax component of 15%, then the total sales tax paid by him will be: 600*0.15 = 90
While calculating sales tax, some points need to be remembered:
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