Question

Find the tax paid by the wholesaler. If the rate of sales tax be 10%.

Answer 1

Let the M.P. of the Wholesaler be ₹ 150

S.P. of wholesaler = ₹ 150 + 10% of ₹ 150
= 150 + 15
= ₹ 165

VAT by wholesaler = ₹ 150 - ₹ 100 = ₹ 50

∴ So tax paid by wholesaler = 10% of ₹ 50 = ₹ 5.