Advertisements
Advertisements
Question
A manufacturer listed the price of his goods at ₹ 160 per article. He allowed a discount of 25% to a wholesaler who in his turn allowed a discount of 20% on the listed price to a retailer. The rate of sales tax on the goods is 10%. If the retailer sells one article to a consumer at a discount of 5% on the listed price, then find
(i) the VAT paid by the wholesaler.
(ii) the VAT paid by the retailer.
(iii) the VAT received by the Government.
Advertisements
Solution
List price (MP) of the goods = ₹ 160 per article
Rate of discount = 25%
S.P.
= `("MP" xx (100 - "D%"))/(100)`
= ₹`(160(100 - 25))/(100)`
= ₹`(160 xx 75)/(100)`
= ₹120
Rate of VAT = 10%
∴ Total VAT
= ₹`(120 xx 10)/(100)`
= ₹12
Now S.P. of wholesaler = ₹160
Rate of discount = 20%
∴ Net S.P.
= ₹`(160 xx (100 - 20))/(100)`
= ₹`(160 xx 80)/(100)`
= ₹128
Rate of VAT = 10%
∴ Total VAT
= `₹(128 xx 10)/(100)`
= ₹12.80
Total S.P.
= ₹128 + ₹12.80
= ₹140.8
Now S.P. of the retailer = ₹160
Net S.P.
= ₹`(160 xx (100 - 5))/(100)`
= ₹`(160 xx 95)/(100)`
= ₹152
VAT at the rate of 10%
= ₹`(152 xx 10)/(100)`
= ₹15.20
(i) VAT paid by the wholesaler
= ₹12.80 – ₹12
= ₹0.80
(ii) VAT paid by the retailer
= 15.20 – 12.80
= ₹2.40
(iii) Total VAT paid to the Govt.
= ₹ 15.20.
RELATED QUESTIONS
The marked price of two articles A and B together is Rs 6,000. The sales tax on article A is 8% and that on article B is 10%. If on selling both the articles, the total sales tax collected is Rs 552, find the marked price of collected of the articles A and B.
Q
[missing]
A manufacturer sells a washing machine to a wholesaler for ₹ 15000. The wholesaler sells it to a trader at a profit of ₹ 1200 and the trader sells it to a consumer at a profit of ₹ 1800. If the rate of VAT is 8%, find :
(i) The amount of VAT received by the State Government on the sale of this machine from the manufacturer and the wholesaler.
(ii) The amount that the consumer pays for the machine.
A shopkeeper buys an article for ₹ 12000 and marks up its price by 25%. The shopkeeper gives a discount of 10% on the marked up price. He gives a further off-season discount of 5% on the balance. But the sales tax (under VAT) is charged at 8% on the remaining price. Find:
- The amount of VAT that a customer has to pay.
- The final price he has to pay for the article.
In the tax period ended March 2015, M/S Hari Singh & Sons purchased floor tiles worth ₹ 800000 taxable at 7.5% and sanitary fittings worth ₹ 750000 taxable at 10%. During this period, the sales turnover for floor tiles and sanitary fittings is worth ₹ 840000 and ₹ 920000 respectively. However, the floor tiles worth ₹ 60000 were returned by the firm during the same period. Calculate the tax liability (under VAT) of the firm for this tax period.
A wholesaler buys a computer from a manufacturer for ₹ 40000. He marks the price of the computer 20% above his cost price and sells it to a retailer at a discount of 10% on the marked price. The retailer sells the computer to a consumer at the marked price. If the rate of sales tax (under VAT) is 10% at every stage, then choose the correct answer from the given four options
Cost of the computer to the retailer (excluding tax) is
A wholesaler buys a computer from a manufacturer for ₹ 40000. He marks the price of the computer 20% above his cost price and sells it to a retailer at a discount of 10% on the marked price. The retailer sells the computer to a consumer at the marked price. If the rate of sales tax (under VAT) is 10% at every stage, then choose the correct answer from the given four options
Cost of the computer to the retailer inclusive of tax is
A shopkeeper buys an article at a discount of 30% and pays sales tax at the rate of 6%. The shopkeeper sells the article to a consumer at 10% discount on the list price and charges sales tax at the’ same rate. If the list price of the article is ₹3000, find the price inclusive of sales tax paid by the shopkeeper.
A retailer buys an article at a discount of 15% on the printed price from a wholesaler. He marks up the price by 10%. Due to competition in the market, he allows a discount of 5% to a buyer. If the buyer pays ₹451.44 for the article inclusive of sales tax (under VAT) at 8%, find :
(i) the printed price of the article
(ii) the profit percentage of the retailer.
