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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 - Mathematics

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Sum

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.

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Solution

The printed price of the camera (MP) = ₹ 1600
Rate of discount = 20%
∴ Sale price

= `("MP" xx (100 - "D"%))/100`

= `(1600(100 - 20))/(100)`

= `(1600 xx 80)/(100)` 
= ₹1280
Rate of S.T. = 6%
∴ Total S.T.

= ₹`(1280 xx 6)/100`
= ₹76.80
In second case,
Sale price = ₹1600 , Rate of sales tax = 6%
∴ Total S.T.

= ₹`(1600 xx 6)/(100)`
= ₹96
(i) Price of camera
= ₹ 1600 + ₹ 96
= ₹ 1696
(ii) VAT paid by the shopkeeper
= ₹ 96 – ₹ 76.80
= ₹ 19.20.

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 4

Video TutorialsVIEW ALL [1]

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