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Punjab Vat

(Querist) 27 April 2011 This query is : Open 
In Punjab there is Surcharge of 10% on vat ie. if our rate is 5% then after including surcharge vat =5.5%. Now my Query is given below
Sales value of goods=1,00,000/-
Output vat @5% =5,000/-
Surcharge on above =500/-
Party A/c is debited 1,05,500/-

Now in Punjab there is 2 parts of total tax payble is 90% & 10%.

If we take total tax as 5,500/-
90% = 4950/-
10%= 550/-

or
90% =5000(ie flat 5%)
10% =500 (ie 10% of 5000)

which one is correct.


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