Question

Manoj buys a lather coat costing Rs 900 at Rs 990 after paying the VAT. Calculate the rate of VAT charge on the coat.

Answer 1

\[\text { Let the rate of VAT be x %  }. \]

\[\text { Then }, \]

\[\text { VAT = Rs } . \left( \frac{x}{100} \times 900 \right)\]

\[ = Rs . 9x\]

So, 

\[900 + 9x = 990\]

\[9x = 90\]

\[x = 10\]

\[\text { Thus, Manoj was charged 10 % VAT on the leather jacket } .\]