Calculate the value of `Rent' from the following data : S. No. | Particulars | Amount (in Rs. crore) (i) | Interest | 45 (ii) | Profit after tax | 20 (iii) | Consumption of fixed capital | 50 (iv) | Gross Domestic Product at Market Price (GDP_MP) | 200 (v) | Compensation of Employees | 45 (vi) | Corporate tax | 5 (vii) | Goods and Services Tax (GST) | 10

Question

Accepted Answer

Using Income Method:
GDP_MP = 200, Depreciation = 50, NIT = GST = 10
NDP_FC = 200 - 50 - 10 = 140

COE = 45 (given)
Profit = Profit after tax + Corporate tax = 20 + 5 = 25
Interest = 45

Operating Surplus = Rent + Royalty + Interest + Profit
NDP_FC = COE + Operating Surplus + Mixed Income
140 = 45 + (Rent + 0 + 45 + 25) + 0
140 = 45 + Rent + 70
Rent = 140 - 115 = Rs. 25 crore