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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

ConceptIntroduction to Sales Tax and Value Added Tax

#### 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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