Method to get value addition

[Rajesh Kumar]

Please explain what is the method to get value addition of a final manufactured product and traded goods.

[Ganeshan Kalyani]

Manufacturing charges + fixed cost + margin = sale value. I have given a rough formula. A qualified knowledge of a Cost Accountant is required to arrive at a price of a product to be sold.

[KASTURI SETHI]

I agree with the views of Sh.Ganeshan Kalyani Ji.

AI Summary

Value addition method: derive sale value by aggregating manufacturing charges, fixed costs and an appropriate margin. Determination of value addition for GST valuation is a pricing exercise where sale value is arrived at by aggregating manufacturing charges, fixed costs and an appropriate margin; computation should be performed by a qualified cost accountant to support tax reporting and compliance.