1.
Example: Value added (GVAMP) = Sales + Change in
Calculate (a) Value added by firm A and B stock – Intermediate Consumption
(b) GDP at FC
Value added (GVAMP) = Sales + (Closing
₹ in Stock – Opening Stock) – I.C
Particulars
lakhs
Firm A:
(i) Sales by firm A 100 Value added (GVAMP) = 100 + (20 – 25) – 40
(ii) Purchases from firm B by firm A 40 Value added (GVAMP) = 100 + (– 5) – 40
(iii) Purchases from firm A by firm B 60 Value added (GVAMP) = ₹ 55 lakh
(iv) Sales by firm B 200 Firm B:
(v) Closing stock of firm A 20 Value added (GVAMP) = 200 + (35 – 45) – 60
Value added (GVAMP) = 200 + (– 10) – 60
(vi) Closing stock of firm B 35
Value added (GVAMP) = ₹ 130 Lakh
(vii) Opening stock of firm A 25
(viii) Opening stock of firm B 45 𝑀𝑃 = GDPMP
GDPMP = 55 + 130 = ₹ 185 Lakh
Indirect taxes (GST) paid by
(ix) 30 GDPFC = GDPMP – NIT = 185 – 30 = ₹155 lakh
both the firms
2. Example:
Value added (GVAMP) = Sales + Change in stock –
Calculate Net Value added at Intermediate Consumption
factor Cost
GVA
MP = (Domestic sales + Exports) +
₹ in
Particulars
lakhs Change in stock – Intermediate
Consumption
(i) Domestic sales 3,000
GVAMP = (3,000 + 500) + (- 100) – 2,000
(ii) Change in Stock (-)100
GVAMP = 3,500 – 100 – 2,000
(iii) Depreciation 300
(iv) Intermediate consumption 2,000 GVAMP = ₹1,400 lakhs
(v) Exports 500 NVAFC = GVAMP – NIT – Depreciation
(vi) Indirect taxes (GST) 250 NVAFC = 1,400 – 250 – 300
Net factor income from
(vii) (-) 50 NVAFC = ₹ 850 lakhs
abroad
3. Example:
Calculate Net Value added at Value added (GVAMP) = Sales + Change in stock –
factor Cost Intermediate Consumption
Particulars Sales = Output sold x Price
Price per unit of Sales = 1,000 x 25
(i) 25 Sales = 25,000
output (₹)
(ii) Output sold (units) 1,000
GVAMP = Sales + Change in stock – I.C
(iii) Depreciation (₹) 1,000 GVAMP= 25,000 + (- 500) – 7,000
(iv) Excise duty (₹) 5,000 GVAMP = 2,5000 – 500 – 7,000
GVAMP = ₹17,500
(v) Change in stock (₹) (-) 500
NVAFC = GVAMP – NIT – Depreciation
(vi) Intermediate costs (₹) 7,000
NVAFC = 17,500 – 5,000 – 1,000
Purchase of
(vii) 10,000 NVAFC = ₹ 11,500
machinery
4. Example:
Calculate Intermediate Consumption Value added (GVAMP) = Value of output – Intermediate
Consumption
(₹) in NVAFC = GVAMP – Depreciation – NIT
Particulars
lakhs 80 = GVAMP – 20 – (Sales tax – subsidies)
80 = GVAMP – 20 – (15 – 5)
(i) Value of output 200 80 = GVAMP – 20 – (10)
80 + 20 + 10 = GVAMP
Net Value Added at 110 = GVAMP
(ii) 80
Factor Cost
GVAMP = Value of output – Intermediate Consumption
(iii) Sales Tax 15
110 = 200 – Intermediate Consumption
Intermediate Consumption = 200 – 110
(iv) Subsidies 5 Intermediate Consumption = 90
(v) Depreciation 20 Intermediate Consumption = ₹ 90 lakhs
5. Example:
Value added (GVAMP) = Sales + Change in stock –
Calculate ‘Sales’.
Intermediate Consumption
(₹) in NVAFC = GVAMP – Depreciation – NIT
Particulars
lakhs 300 = GVAMP – 30 – (Indirect tax – subsidies)
300 = GVAMP – 30 – (20 – 0)
Intermediate 300 = GVAMP – 30 – (20)
(i) 200
Consumption 300 + 30 + 20 = GVAMP
Net Value Added at 350 = GVAMP
(ii) 300
Factor Cost GVAMP = Sales + Change in stock – Intermediate
Consumption
(iii) Indirect Tax (GST) 20
350 = Sales + (– 50) – 200
(iv) Change in stock - 50 350 + 50 + 200 = Sales
Sales = 600
(v) Depreciation 30
Sales = ₹ 600 lakhs
