Calculate Net Value Added at Factor Cost (NVA_FC) from the following data : From the following data, estimate the value of Net Indirect Taxes (NIT) :

Question

Accepted Answer

(i) NVA_FC:
Given: Fixed capital (life 5 years) = 15 lakh, so Depreciation = 15/5 = 3 lakh
Domestic Sales = 200, Change in stock = -10, Exports = 10
Single use producer goods = 120 (intermediate consumption)

Value of Output = Domestic Sales + Exports + Change in Stock = 200 + 10 + (-10) = 200 lakh
NVA_FC = 200 - 120 - 3 = Rs. 77 lakh

(ii) NIT:
Given: NNP_MP = 1,400, NFIA = -20, GNP_FC = 1,300, Depreciation = 100
NNP_FC = GNP_FC - Depreciation = 1,300 - 100 = 1,200
NIT = NNP_MP - NNP_FC = 1,400 - 1,200 = Rs. 200 crore