Question

# A purchases an article for ₹ 3,100 and sells it to B for ₹ 4250. B in turn sells it to C for ₹ 5000. If VAT is 10%, find the VAT levied on A and B. Rs. 116, Rs. 82 respectively Rs.115, Rs. 85 respectively Rs.115, Rs. 75 respectively Rs. 136, Rs. 75 respectively

Solution

## The correct option is C Rs.115, Rs. 75 respectively VAT paid by A = 10% of ₹ (4250 - 3100) = 10% of  ₹ 1,150 = ₹ 115 VAT paid by B = 10% of ₹ (5,000 - 4250)                        = 10% of 750                        = ₹ 75.

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