A shopkeeper buys a camera at a discount of 20% from a wholesaler. The printed price of the camera is Rs. 1600 and the rate of sales tax is 6%. The shopkeeper sells it to a buyer at the printed price and charges tax at the same rate. Find:

(i) The price paid by the shopkeeper.

(ii) The VAT (Value Added Tax) paid by the shopkeeper.

Rs. 1365, Rs. 24.45

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Rs. 1356.80, Rs.19.20

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Rs. 1456, Rs.29.20

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Rs. 1356.80, Rs. 96

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Solution

The correct option is B
Rs. 1356.80, Rs.19.20

(i) Price paid by the shopkeeper.

Discount % = 20 % ; Hence 20 % of 1600 = ₹ 320

Price of the camera after discount = ₹ 1600- 32 1280

Rate of Sales tax = 6 %

Hence 6% of 1280 = ₹ 76.80

Hence the price paid by the shopkeeper

= ₹ 1280 + ₹ 76.80

= ₹ 1356.80

(ii) For wholesaler, VAT = 6% of 1280 = ₹ 76.80

For buyer, VAT = 6% of 1600

= $(\frac{6}{100})$ $\times$ 1,600

= ₹ 96

VAT paid by the shopkeeper = ₹ 96 – ₹ 76.80 = ₹ 19.20

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Similar questions

A shopkeeper buys a camera at a discount of 20% from the wholesaler, the printed price of the camera being ₹ 1600 and rate of sales tax is 6 %. The shopkeeper sells it to the buyer at the printed price and charges sales tax at the same rate. Find

i) the price at which the camera can be bought

ii) the VAT ( Value Added Tax) paid by the shopkeeper

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