Suppose the shopkeeper buys the article from wholesaler at Rs. x.
Tax paid by shopkeeper = `12/100xx` x
Since, the shopkeeper sells the article for Rs. 1500
and charges sales-tax at the rate of 12%.
Tax charged by the shopkeeper = 12% of 1500 = `12/100xx` 1500
Shopkeeper pays VAT of Rs. 36 to the Government.
Now, VAT = Tax charged by shopkeeper - Tax paid by shopkeeper
`=> 36=12/100xx1500-12/100xx x`
`=> 1500 - x=(36xx100)/12`
`=> x ="Rs." 1200`
`=>` Tax paid by shopkeeper `= 12/100xx1200=` Rs. 144
Thus, total amount paid by shopkeeper indusive of tax
= Rs. (1200 + 144)
= Rs. 1344
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- Computation of Tax