A shopkeeper bought a washing machine at a discount of $20 %$ from a wholesaler, the printed price of the washing machine being Rs. $18, 000$ . The shopkeeper sells it to a consumer at a discount of $10 %$ on the printed price. If the rate of sales tax is $8 %$ find the VAT paid by the shopkeeper (in Rs.).

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Solution

Given: Printed price of washing machine $=$ Rs. $18, 000$ , Rate of discount $= 20 %$ .
Amount of discount to shopkeeper $= \frac{20}{100} \times 18, 000$
$=$ Rs. $3, 600$
Shopkeeper's price $=$ Rs. $18, 000 -$ Rs. $3, 600$
$=$ Rs. $14, 400$
Sales Tax paid by shopkeeper $= \frac{8}{100} \times 14, 400 =$ Rs. $1, 152$ .
Discount for consumer $= \frac{10}{100} \times 18, 000 =$ Rs. $1, 800$
Price for consumer $=$ Rs. $18, 000 -$ Rs. $1, 800 =$ Rs. $16, 200$
Tax charged by the shopkeeper $= \frac{8}{100} \times 16, 200 =$ Rs. $1, 296$ .
Since, Tax paid by the shopkeeper $=$ Rs. $1, 152$
$∴$ VAT paid by the shopkeeper $=$ Tax charged $-$ Tax paid
$=$ Rs. $1, 296 -$ Rs. $1, 152$
$=$ Rs. $144$

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A shopkeeper bought a washing machine at a discount of 20% from a wholesaler, the printed price of the washing machine being Rs. 18,000. The shopkeeper sells it to a consumer at a discount of 10% on the printed price. If the rate of sales tax is 8% find the VAT paid by the shopkeeper (in Rs.).