3. The ABC of VAT A Raw Material Producer Sale Value Rs. 100 VAT @4%-Rs.4 Net VAT Payable – Rs.4 B Manufacturer Sale Value Rs. 200 VAT @4%-Rs.8 Net VAT Payable – Rs.4 C Wholesaler Sale Value Rs. 250 VAT @4%-Rs.10 Net VAT Payable – Rs.2 D Retailer Sale Value Rs. 300 VAT @4%-Rs.12 Net VAT Payable – Rs.2 Total tax paid in the chain = Rs.12 equivalent to the Last point tax