A shopkeeper buys a camera at a discount of 20% from the wholesaler, the printed price of the camera being Rs 1,600 and the rate of sales tax being 6%. The shopkeeper sells it to a buyer at the printed price and charges tax at the same rate. Find:
The price at which the camera can be bought from the shopkeeper.
The VAT (Value Added Tax) paid by the shopkeeper.
Printed price of camera = Rs 1,600
Discount% = 20%
Selling price for the wholesaler = 1600 - 20% of 1600
`= 1600 - 20/100 xx 1600`
`= 1600 - 320`
Tax charged by the wholesaler = 6% of 1280
`= 6/100 xx 1280`
Purchase price for the shopkeeper
= Rs 1280 + Rs 76.80 = Rs 1356.80
Selling price for the shopkeeper = Rs 1600
Tax charged by the shopkeeper = 6% of 1600
`= 6/10 xx 1600`
Purchase price for a customer = Rs 1600 + Rs 96 = Rs 1696
The price at which the camera can be bought from the shopkeeper is Rs 1696
VAT paid by the shopkeeper = Tax charged - Tax paid
= Rs 96 - Rs 76.80 = Rs 19.20
The VAT (Value Added Tax) paid by the shopkeeper is Rs 19.20.