Question

A colour TV is available for Rs. 13,440 inclusive of VAT. If the original cost of TV is Rs. 12,000, find the rate of VAT.

Answer 1

Cost of TV including VAT = Rs. 13,440
Actual cost = Rs. 12,000
$\therefore$ Amount of VAT = Rs. 13,440 - Rs. 12,000 = Rs. 1,440
Rate of VAT $=Rs.\frac{1,440\times 100}{12,000}=Rs.12\%$