Question

Calculate Net Value Added at factor cost from the following data:

S. No.	Particulars	Amount (₹ in lakhs)
(i)	Durable producers goods (with a life span of 10 years)	10
(ii)	Single-use producer goods	5
(iii)	Sales	20
(iv)	Unsold Goods (Stock)	2
(v)	Goods & Services Tax (GST)	1

Answer 1

NVAFc = Sales + Unsold output − Single use producer goods − Depreciation − Taxes on production

= `20 + 2 - 5 - ((10/10))/((10/10)) - 1`

= 20 + 2 − 5 − 1 − 1

= ₹ 15 lakh