Question

A fruit seller buys fruits from a wholesaler for Rs 1000 and paid sales tax at 10%. He then sells it to the consumer for Rs 1500 and charges the same sales tax. What is the VAT paid by the shopkeeper?

• A. Rs 50
• B. Rs 100
• C. Rs 150
• D. Rs 200

Answer 1

The correct option is A

Rs 50

Given that, the fruit seller buys fruits from a whole seller for Rs 1000.
Sales Tax paid by the fruit seller is

$=1000\times \left(\frac{10}{100}\right)=Rs100$
The shopkeeper sold it for Rs 1500.
So, the Sales tax paid by the consumer is

$=1500\times \left(\frac{10}{100}\right)=150$
Therefore, VAT paid by the shopkeeper = Rs 150 - Rs 100 = Rs 50