Question

Harshna gave her car for service at service station on 27-05-2009 and was charged as follows:

1. 3.10 litres engine oil @ Rs 178.75 per litre and VAT @ 20%.
2. Rs 1,105.12 for all other services and VAT @ 12.5%.
3. Rs 2,095.80 as labour charges and service tax @10%.
4. 3% cess on service Tax.
   Find the bill amount.

Answer 1

a. The total litres of engine oil used = 3.10 L

Rate of engine oil per litres = Rs. 178.75

The cost of engine oil = 3.10 × 178.75 = Rs. 554.125

= `554.125 + 20/100 xx 554.125`

= `554.125 + 1/5 xx 554.125`

= 554.125 + 110.825

= Rs. 664.95

b. Total amount for other services:

= Other Service Charges + VAT @ 12.5%

= 1105.12 + 12.5% of 1105.12

= 1105.12 + 138.14

= Rs. 1243.26

c. Total Amount for Labour Charges

= Labour charges + 10% service tax

= 2095.80 + 10% of 2095.80

= 2095.80 + 209.58

= Rs. 2305.38

d. 3% on service Tax

As calculated earlier, service tax = Rs. 209.58

Cess on Service Tax @ 3% = `3/100 xx 209.58`

= Rs. 6.29  

Bill amount = Rs. 664.95 + Rs. 1243.26 + Rs. 2305.38 + Rs. 6.29

= Rs. 4219.88

= Rs. 4220