VAT

Q.

The price of a T.V set inclusive of sales tax is Rs. 13, 530. If the rate of sales tax is $10\%$, find its basic (marked) price.

1. Rs. 12300

2. Rs. 13200

3. Rs. 11320

4. Rs. 11230

Q. Tarun bought an article for Rs 8, 000 and spent Rs 1, 000 for transportation. He marked the article at Rs 11, 700 and sold it to a customer. If the customer had to pay $10\%$ sales tax, find:
(i) The customer's price. (ii) Tarun's profit percent
[4 MARKS]

Q. The catalogue price of a computer set is Rs 45, 000. The shopkeeper gives a discount of 7% on the listed price. He gives a further off-season discount of 4% on the balance. However, sales tax at 8% is charged on the remaining amount Find :
i) the amount of sales tax a customer has to pay
ii) the final price he has to pay for the computer set.
[4 MARKS]

Q.

A shopkeeper buys a camera at a discount of 20% from the wholesaler, the printed price of the camera being ₹ 1600 and rate of sales tax is 6 %. The shopkeeper sells it to the buyer at the printed price and charges sales tax at the same rate. Find

i) the price at which the camera can be bought

ii) the VAT ( Value Added Tax) paid by the shopkeeper

1. i) ₹ 1280 ii) ₹ 76.8

2. i) ₹ 1692 ii) ₹ 67.8

3. i) ₹ 1696 ii) ₹ 76.8

4. i) ₹ 1280 ii) ₹ 96

Q. A shopkeeper sells an article at the listed price of Rs 1, 500 and the rate of VAT is 12% at each stage of sale. If the shopkeeper pays a VAT of Rs 36 to the government, what was the price, inclusive of tax, at which the shopkeeper purchased the article from the wholesaler? [3 MARKS]

Q.

The cost of a pair of shoes at a shop was Rs. 1450. The sales tax charged was 8%. Find the bill amount.

1. Rs. 1536

2. Rs. 1556

3. Rs. 1566

4. Rs. 1456

Q.

A shopkeeper sells an article at the listed price of Rs 1500 & the rate of VAT is 12% at each stage of the sale.

If the shopkeeper pays a VAT of Rs 36 to the government, what was the price inclusive of tax at which the shopkeeper purchased the article from the wholesaler?

1. Rs.1300

2. Rs.1344

3. Rs.2688

4. Rs.1400

Q.

Question 62

The cost of a book marked at Rs 190 after paying a sales tax of 2% is Rs. 192.

Q.

A manufacturing company sells a T.V. to a trader A for Rs 18000. Trader A sells it to trader B at a profit of Rs 750 and trader B sells it to a consumer at a profit of Rs 900. If the rate of sales tax (under VAT) is 10% find

i) the amount of tax received by the Government

ii) the amount paid by the consumer for the T.V.

1. Rs 1800, Rs 75

2. Rs 1850, Rs 70

3. Rs 1600, Rs 50

4. Rs 1865, Rs 45

Q.

A manufacturer sells a washing machine to a wholesaler for Rs 15000. The wholesaler sells it to a trader at a profit of Rs 1200 and the trader in turn sells it to a consumer at a profit of Rs 1800. If the rate of VAT is 8% find the amount of VAT received by the State Government on the sale of this machine from the wholesaler.

1. Rs 85

2. Rs 54

3. Rs 80

4. Rs 96

Q. A shopkeeper bought an article for Rs 3, 450. He marks the price of the article $16\%$ above the cost price. The rate of sales tax charged on the article is 10%. Find the :
(i) Marked price of the article
(ii) Price paid by a customer who buys the article
[4 MARKS]

Q.

Question 28

Sales tax = Tax % of ___

Q.

A manufacturer marks an article at Rs. 5000. He sells the article 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 its marked price. If the retailer sells the article without any discount and at each stage, the sales tax is 8%, then the amount of VAT paid by wholesaler and retailer are :

1. Rs. 40, Rs. 60 respectively
   

2. Rs. 80, Rs. 60 respectively
   

3. Rs. 80, Rs. 40 respectively
   

4. Rs. 20, Rs. 60 respectively

Q.

Kylie buys an article for ₹ 10000 and pays 7% tax. He sells the same article for ₹ 13000 and charges 9% tax. Find the VAT paid by Kylie.

1. ₹ 1170

2. ₹ 470

3. None of these

4. ₹ 700

Q.

A shopkeeper buys an item at a discount of 20% which has a marked price (M.P) of Rs. 3000 and pays a sales tax at the rate of 8%. The shopkeeper sells the article to a buyer at marked price, and charges a sales tax at the rate of 10%. Find the VAT paid by the shopkeeper.

1. Rs. 192
   

2. Rs. 108
   

3. Rs. 240

4. Rs. 96
   

Q.

Reena bought a washing machine for ₹ 9800 including tax of 10%. Find the price of the washing machine before VAT was added.

1. Rs. 8854

2. Rs. 8742

3. Rs. 7689

4. Rs. 8909

Q.

Question 110 (ii)

A store is having a 25% discount sale. Sheela has a Rs.50 gift voucher and wants to use it to buy a board game marked for Rs.320. She is not sure how to calculate the concession she will get. The sales clerk has suggested two ways to calculate the amount payable. Method 1 Subtract Rs.50 from the price and take 25% off the resulting price. Method 2 Take 25% off the original price and then subtract Rs.50.
For each method, calculate the amount Sheela would have to pay. Show your work.

Q.

A manufacturing company M sells a computer to a distributor D for Rs 22000. The distributor D sells it to a retailer R for Rs 24750 and the retailer sells it to a consumer for Rs 26, 000. If the rate of sales tax (under VAT) is 10%, find:

i) the amount of VAT collected by the government on the sale of computer

ii) the amount that the consumer pays for the machine.

1. Rs 2500 , 38500

2. Rs 2600 , 28600

3. Rs 2600 , 25000

4. Rs 3000 , 28600

Q. An article is marked at Rs. 4, 500 and the rate of sales-tax on it is 6%. A trader buys this article at some discount and sells it to a customer at the marked price. If the trader pays Rs. 81 as VAT, find:
(i) how much per cent discount does the trader get ?
(ii) the total money paid by the trader, including tax, to buy the article.

1. $30\%;Rs.3,339$
2. $10\%;Rs.2,339$
3. $15\%;Rs.4,339$
4. None o these

Q. Question 8
The price of a TV is Rs 13, 000. The sales tax charged on it is at the rate of 12%. Find the amount that Vinod will have to pay if he buys it.

Q.

Tipping at the campus coffee cart, a medium coffee cost $\$1.65$. Mary Anne brings $\$2.00$ with her when she buys a cup of coffee and leaves the change as a tip. What percent tip does she leaves $?$

Q.

If the rate of sales tax is 5%, ‘A’ has to pay Rs 7, 140 for steel cup board. What amount he has to pay if the sales tax is increased by 2%.

1. Rs 7236

2. Rs 7276

3. Rs 7476

4. Rs 7226

Q.

Question 101

A lady bought an air-conditioner for Rs. 15200 and spent Rs. 300 and Rs. 500 on its transportation and repair, respectively. At what price should she sell it to make a gain of 15 %?

Q.

In the tax period ended March 2008, M/S Bhavesh Sippy & Sons purchased floor tiles worth Rs 8000 taxable at 7.5% and sanitary fittings worth Rs 7500 taxable at 10%. During this period, the sales turnover for floor tiles and sanitary fittings are worth Rs 8400 and Rs 9200 respectively. Calculate the tax liability (under VAT) of the firm for this tax paid.

1. Rs 300

2. Rs 200

3. Rs 400

4. Rs 500

Q.

Value Added Tax is paid by the buyer and the seller only.

1. True

2. False

Q.

Which of the following is not correct about VAT.

1. The difference of tax recovered on sale value and paid on purchase is taken as tax.
   

2. It is not in addition to existing tax but replacement of sales tax.
   

3. VAT is collected by Merchant/Wholeseller/Trader
   

4. Value is added at each transfer of goods from the original manufacturer to the retailer.

Q.

A manufacturer sells a washing machine to a wholesaler for Rs. 20000. The wholesaler sells it to a trader at a profit of Rs. 1500 and the trader, in turn, sells it to a consumer at a profit of Rs. 2000. If the rate of VAT is 8%, the VAT received from manufacturer and wholesaler are:

1. Rs. 160, Rs. 1200 respectively
   

2. Rs. 1600, Rs. 120 respectively
   

3. Rs. 1200, Rs. 160 respectively
   

4. Rs. 120, Rs. 1600 respectively

Q.

Mohan paid Rs 20 as sales tax on a pair of shoes worth Rs 250. Find rate of sales tax.

1. 3%

2. 8%

3. 5%

4. 10%

Q.

The price of a TV set inclusive of sales tax of 9% is Rs 13407/-. Find its marked price. If the sales tax is increased to 13%, how much more does the customer pay for the TV

1. Rs 400

2. Rs 480

3. Rs 492

4. Rs 350

Q.

List price of a pair of shoes is Rs. 540. If Amit paid Rs. 45 as sales tax for it, find the rate of sales tax.

1. 50/3%

2. 25/3%

3. 20%

4. 18%