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A Shopkeeper Buys 15 Identical Articles for Rs 840 and Pays Sales Tax at the Rate of 8%. He Sells 6 of These Articles at Rs 65 Each and Charges Sales Tax at the Same Rate. Calculate the Vat Paid by - ICSE Class 10 - Mathematics

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Question

A shopkeeper buys 15 identical articles for Rs 840 and pays sales tax at the rate of 8%. He sells 6 of these articles at Rs 65 each and charges sales tax at the same rate. Calculate the VAT paid by the shopkeeper against the sale of these six articles.

Solution

Cost price of 15 articles = Rs 840

Then cost price of 6 articles = `(840 xx 6)/15` = Rs 336

Sale tax paid by shopkeeper for articles

= 8% of Rs 336

`= 8/100 xx "Rs"  336 = "Rs"  26.88`

Sale price of articles = `6 xx "Rs"  65 = "Rs"  390`

Tax charged by shopkeeper = 8% of Rs390

`= 8/100 xx  "Rs"  390 = "Rs"  31.20`

VAT paid by shopkeeper = Rs 31.20 - Rs 26.88 = Rs 4.32

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Solution A Shopkeeper Buys 15 Identical Articles for Rs 840 and Pays Sales Tax at the Rate of 8%. He Sells 6 of These Articles at Rs 65 Each and Charges Sales Tax at the Same Rate. Calculate the Vat Paid by Concept: Introduction to Sales Tax and Value Added Tax.
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