Shaalaa.com | Sales Tax and Value Added Tax Example 2
Series 1: playing of 9
Computation of tax including problems involving discounts, list-price, profit, loss, basic/cost price including inverse cases
The printed price of an article is Rs. 60,000. The wholesaler allows a discount
of 20% to the shopkeeper. The shopkeeper sells the article to the customer at the
printed price. Sales tax (under VAT) is charged at the rate of 6% at every stage. Find:
(1) The cost to the shopkeeper inclusive of tax.
(2) VAT paid by the shopkeeper to the Government.
(3) The cost to the customer inclusive of tax.
A manufacturer marks an article for Rs. 5000. He sells it to a wholesaler at a discount of 25% on the marked price and the wholesaler sells it to a retailer at a discount of 15% on the marked price. The retailer sells it to a consumer at the marked price and at each stage, the VAT is 8%. Calculate the amount of VAT received by the government from:
(1) the wholesaler,
(2) the retailer.
Tarun bought and article for Rs. 8000 and spent Rs. 1000 for transportation. He marked the article Rs. 11,700 and sold it to a customer. If the customer had to pay 10% sales tax, find:
(1) the customer’s price
(2) Tarun’s profit percent.
Rajat purchases a wrist-watch costing Rs 540. The rate of sales tax is 8%. Find the total amount paid by Rajat for the watch.
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