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.
APPEARS IN
RELATED QUESTIONS
A shopkeeper bought a washing machine at a discount of 20% from a wholesaler, the printed price of the washing machine being Rs. 18,000. The shopkeeper sells it to a consumer at a discount of 10% on the printed price. If the rate of sales tax is 8%, find:
(i) the VAT paid by the shopkeeper.
(ii) the total amount that the consumer pays for the washing machine
A manufacturer marks an article for Rs. 5000. He sells it to a wholesaler at a discount of 25% on the marked price and the wholesaler sells it to a retailer at a discount of 15% on the marked price. The retailer sells it to a consumer at the marked price and at each stage, the VAT is 8%. Calculate the amount of VAT received by the government from:
(1) the wholesaler,
(2) the retailer.
Ramesh paid Rs 345.60 as sales tax on a purchase of Rs 3,840. Find the rate of sales tax.
Sarita purchases biscuits costing Rs 158 on which the rate of sales tax is 6%. She also purchases some cosmetic goods costing Rs 354 on which the rate of sales tax is 9%. Find the total amount to be paid by Sarita.
A wrist-watch is available at a discount of 9%. If the list-price of the watch is Rs. 1,400; find the discount is given and the selling price of the watch.
A shopkeeper bought a washing machine at a discount of 20% from a wholesaler, the printed price of the washing machine being Rs. 18,000. The shopkeeper sells it to a consumer at a discount of 10% on the printed price. If the rate of sales tax is 8%, find:
(i) the VAT paid by the shopkeeper.
(ii) the total amount that the consumer pays for the washing machine.
A shopkeeper buys a camera at a discount of 20% from the wholesaler, the printed price of the camera being ₹ 1600 and the rate of sales tax is 6%. The shopkeeper sells it to the buyer at the printed price and charges sales tax at the same rate. Find
(i) the price at which the camera can be bought.
(ii) the VAT (Value Added Tax) paid by the shopkeeper.
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 a particular tax period, Mr. Sunder Dass, a shopkeeper purchased goods worth ₹ 960000 and paid a total tax of ₹ 62750 (under VAT). During this period, his sales consisted of a taxable turnover of ₹ 400000 of goods taxable at 6% and ₹ 480000 for goods taxable at 12.5%. He also sold tax exempted goods worth ₹ 95640 in the same period. Calculate his tax liability (under VAT) for this 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
Consumer’s cost price inclusive of VAT is
