Different Stages of Value Addition

Q.

A manufacturer sells an article to a wholesaler for ₹ 5000 . The wholesaler sells it to a trader at a profit of ₹ 1000 and trader , in turn sells it to a customer at a profit of ₹ 1500. If the rate of VAT is 8 % find :

i) the amount of VAT received by the State Goverment on the sale of this article

ii) the amount that customer pays for the article

1. i) ₹ 600 , ii) ₹ 7500

2. i) ₹ 500 , ii) ₹ 5500

3. i) ₹ 800 , ii) ₹ 6500

4. i) ₹ 1000 , ii) ₹ 8500

Q.

A manufacturer A sells an article to a trader B for ₹ 20, 000. Trader B sells to a trader C at a profit of ₹ 5000 and trader C sells it to a customer at a profit of ₹ 6000, if the rate of VAT is 10 % , find the amount of tax ( under VAT) received by the State Government on the sale of this article

1. ₹ 2500

2. ₹ 2000

3. ₹ 3100

4. ₹ 1100