Question

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.

• A. Rs 1800, Rs 75
• B. Rs 1600, Rs 50
• C. Rs 1850, Rs 70
• D. Rs 1865, Rs 45

Answer 1

The correct option is A

Rs 1800, Rs 75