Question:
From the following data, estimate the value of Net Indirect Taxes (NIT):
\[
\begin{array}{|c|l|c|}
\hline
\textbf{S.No.} & \textbf{Particulars} & \textbf{Amount (in Rs. crore)} \\ \hline
(i) & \text{Net National Product at Market Price } (NNP_{mp}) & 1,400 \\ \hline
(ii) & \text{Net Factor Income from Abroad } (NFIA) & 100 \\ \hline
(iii) & \text{Gross National Product at Factor Cost } (GNP_{fc}) & 1,300 \\ \hline
(iv) & \text{Consumption of Fixed Capital} & 100 \\ \hline
\end{array}
\]
From the following data, estimate the value of Net Indirect Taxes (NIT):
\[
\begin{array}{|c|l|c|}
\hline
\textbf{S.No.} & \textbf{Particulars} & \textbf{Amount (in Rs. crore)} \\ \hline
(i) & \text{Net National Product at Market Price } (NNP_{mp}) & 1,400 \\ \hline
(ii) & \text{Net Factor Income from Abroad } (NFIA) & 100 \\ \hline
(iii) & \text{Gross National Product at Factor Cost } (GNP_{fc}) & 1,300 \\ \hline
(iv) & \text{Consumption of Fixed Capital} & 100 \\ \hline
\end{array}
\]
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Net Indirect Taxes are calculated by subtracting Gross National Product at Factor Cost from the sum of Net National Product at Market Price and Consumption of Fixed Capital.
Updated On: Feb 1, 2025
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Solution and Explanation
Formula: \[ NIT = NNP_{mp} - NNP_{fc} \] Since \[ NNP_{fc} = GNP_{fc} - NFIA \] Calculation: \[ NNP_{fc} = 1,300 - 100 = 1,200 \] \[ NIT = 1,400 - 1,200 = 200 \] Thus, the Net Indirect Taxes (NIT) is Rs. 200 crore.
Net Indirect Taxes = \( (i) + (iv) (iii) \)
\[ {Net Indirect Taxes} = 1,400 + 100 1,300 = Rs.200 { crore} \]
\[ {Net Indirect Taxes} = 1,400 + 100 1,300 = Rs.200 { crore} \]
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