BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Sales tax is always calculated on the cost price of an item and is added to the value of the bill. Q. Value added tax is the tax added to the marked price of an item that is being sold.

Detailed explanation-2: -What is the formula to calculate sales tax? The formula to calculate sales tax is Total Sales Tax = Cost of item x Sales tax rate.

Detailed explanation-3: -Taxable Income Formula = Gross Sales – Cost of Goods Sold – Operating Expense – Interest Expense – Tax Deduction/ Credit.

Detailed explanation-4: -Sales tax (ST) is the tax charged by the government on the items sold by the shopkeepers. The tax is then paid by the shopkeeper to the government. Sales tax = Tax% of Bill Amount.