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Question
A retailer purchases a fan for ₹ 1200 from a wholesaler and sells it to a consumer at a 15% profit. If the rate of sales tax (under VAT) at every stage is 8%, then choose the correct answer from the given four options
VAT paid by the wholesaler is
Options
₹96
₹14.40
₹110.40
₹180
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Solution
Rate of VAT = 8%
.’. VAT paid by wholesaler
= ₹1200 x `(8)/(100)`
= ₹96.
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