Question

Find the tax paid by the retailer. If the rate of sales tax be 10%.

Answer 1

Let the M.P. of retailer be ₹ 200

S.P. of retailer = ₹ 200 + 10% of ₹ 200
= 200 + 20
= ₹ 220

VAT by retailer = ₹200 - 150 = ₹ 50

∴ So tax paid by retailer = 10% of 50 = ₹ 5.