Question

The printed price of an air conditioner is Rs. 45000/-. The wholesaler allows a discount of 10%
to the shopkeeper. The shopkeeper sells the article to the customer at a discount of 5% of the
marked price. Sales tax (under VAT) is charged at the rate of 12% at every stage. Find:

1) VAT paid by the shopkeeper to the government

2) The total amount paid by the customer inclusive of tax.

Answer 1

1) Printed price of an air conditioner =Rs. 45000

Discount =10%

∴ C.P. οf the air conditioner = Rs.`(45000xx(100-10))/100`

= Rs `(45000 xx 90)/100`

= Rs 40500

VAT(12%) = `40500 xx 12/100` = Rs 4860

So, the shopkeeper paid VAT of Rs. 4860 to the government.

2) Discount =5%of the marked price

∴ C.P. οf the air conditioner= Rs `(45000xx(100-5))/100`

= Rs `(45000xx95)/100`

= Rs  42750

VAT (12%) = `42750 xx 12/100 = Rs 5130`

So, the total amount paid by the customer inclusive of tax

=Rs. 42750 + Rs.5130

= Rs.47880