#### Question

Q

#### Solution

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`

`=> 36=12/100(1500-x)`

`=> 1500 - x=(36xx100)/12`

`=> 1500-x=3000`

`=> 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

Is there an error in this question or solution?

Advertisement

Advertisement

Q Concept: Computation of Tax.

Advertisement