Question

A colour TV is available for Rs 13440 inclusive of VAT. If the original cost of TV is Rs 12000, find the rate of VAT.

Answer 1

Cost price of the TV including VAT  = Rs. 13440

Let the rate of VAT be x%

Cost of the TV = x% of 12000 + 12000

13440 - 12000 = `12000xxx/100`

13440 - 12000 = 120x

120x = 1440

\[x = \frac{1440}{120}\]

x = 12

Thus, the rate of VAT on the colour TV is 12%