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A Shopkeeper Buys an Article at a Discount of 30% of the List Price Which is Rs 48,000. in Turn, the Shopkeeper Sells the Article at 10% Discount. If the Rate of the Vat is 10%, - Mathematics

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A shopkeeper buys an article at a discount of 30% of the list price which is Rs 48,000. In turn, the shopkeeper sells the article at 10% discount. If the rate of the VAT is 10%, find the VAT to be paid by the shopkeeper.

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Solution

The list price of the article = Rs 48000

Discount = 30% of Rs 48000 = `30/100 xx  48000 = Rs 14400`

∴ Cost price for shopkeeper = `Rs (48000 - 14400) = Rs 33600`

Tax paid by shopkeeper = `10/100 xx 33600 = Rs 3360`

Shopkeeper sells an article to the customer at 10%  discount on listed price

∴ Discount = `10% on Rs 48000 = 10/100 xx 48000 = Rs 4800`

∴ S.P by shopkeeper after discount = `Rs (48000- 4800) = Rs 4320`

Tax charged by shopkeeper = `10/100 xx 43200 = Rs 4320`

∴ VAT paid by the shopkeeper = Tax charged - Tax paid

= Rs (4320 - 3360)

= Rs 960

Concept: Sales Tax, Value Added Tax, and Good and Services Tax
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