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A Manufacturing Company ‘P’ Sells a Desert Cooler to a Dealer a for ₹ 8100 Including Sales Tax (Under Vat). the Dealer a Sells It to a Dealer B for ₹ 8500 Plus Sales Tax and the Dealer - Mathematics

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Sum

A manufacturing company ‘P’ sells a Desert cooler to a dealer A for ₹ 8100 including sales tax (under VAT). The dealer A sells it to a dealer B for ₹ 8500 plus sales tax and the dealer B sells it to a consumer at a profit of ₹ 600. If the rate of sales tax (under VAT) is 8%, find
(i) the cost price of the cooler for dealer A.
(ii) the amount of tax received by the Government.
(iii) the amount which the consumer pays for the cooler.

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Solution

Manufactures ‘P’ selling price for Desert cooler including sales tax (VAT) = ₹ 8100
Rate of sales tax (VAT) = 8%
(i) ∴ Sale price excluding VAT 

= `(8100 xx 100)/(100 + 8)`

= `(8100 xx 100)/(108)`
= ₹7500
Cost price of dealer A = ₹ 7500
and sale price of dealer A = ₹ 8500
Gain
= ₹ 8500 – ₹ 7500
= ₹ 1000
or cost price of dealer B = ₹ 8500
Gain = ₹ 600
S.P. of dealer B
= ₹ 8500 + ₹ 600
= ₹ 9100
Consumers cost price
= ₹ 8500 + ₹ 600
= ₹ 9100
(ii) Tax paid to the Govt.

= `₹7500 xx (8)/(100) + (1000 xx 8)/(100) + (600 xx 8)/(100)`

= ₹ 600 + ₹ 80 + ₹ 48
= ₹ 728
The amount which the consumer pays
= ₹ 7500 + ₹ 1000 + ₹ 600 + ₹ 728
= ₹ 9828.

Concept: Computation of Tax
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APPEARS IN

ML Aggarwal Understanding ICSE Mathematics Class 10 Solved
Chapter 1 Value Added Tax
Exercise 1.1 | Q 9

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