Question

An electronics manufacturer sells an LCD to the dealer for Rs 25,000. The dealer sells it to the retailer at Rs 32,000 and the retailer sells it to the customer at Rs 45,000. If tax is levied at each stage at the rate of 10%, find the tax paid by the manufacturer, dealer and the retailer.

Answer 1

Selling price for manufacturer= Rs 25,000

Tax paid by manufacturer= 10 % of Rs 25,000

`= 10/100 xx  "Rs"  25000`

= Rs 2,500 

Tax paid by manufacturer= Rs 2,500

Selling price for dealer= Rs 32,000 

Cost price for dealer= Rs 25,000

Profit= Rs (32,000 - 25,000) =Rs 7,000

Tax paid by dealer= 10 %  of Rs 7,000 

`= 10/100 xx  "Rs"  7000`

= Rs 700 

Tax paid by dealer= Rs 700 

Selling price for retailer= Rs 45,000 

Cost price for retailer = Rs 32,000 

Profit= Rs ( 45,000 - 32,000) =Rs 13,000 

Tax paid by retailer= 10 % of Rs 13,000 

`= 10/100 xx "Rs"  13000`

= Rs 1,300 

Tax paid by retailer= Rs 1,300