Question

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

• A. i) ₹ 1280 ii) ₹ 76.8
• B. i) ₹ 1692 ii) ₹ 67.8
• C. i) ₹ 1696 ii) ₹ 76.8
• D. i) ₹ 1280 ii) ₹ 96

Answer 1

The correct option is C

i) ₹ 1696 ii) ₹ 76.8

Given that the printed price of the camera = ₹ 1600
Rate of discount = 20 % ;
Discount Amount = 1600 $\times$ $\frac{20}{100}$
= ₹ 320
Reduced Price of the Camera =1600 - 320 = ₹ 1280

Rate of Sales Tax = 6 %
$\therefore$ Tax paid by the shopkeeper= Reduced Price $\times$ rate of sales tax
= 1280$\times$ $\frac{6}{100}$
= ₹ 76.8

Marked Price of the camera = ₹ 1600 ; Rate of Sales tax = 6 %
Tax Charged = Reduced Price $\times$ rate of sales tax
= 1600$\times$ $\frac{6}{100}$
= ₹ 96
i)Price at which camera can be bought = ₹ ( Marked Price + Rate of Sales Tax x Marked Price )
= ₹ 1600 + 1600$\times$ $\frac{6}{100}$
= 1600 + 96
= ₹ 1696

ii)VAT paid by the shopkeeper = Tax charged - Tax Paid
= 96 - 76.80
= ₹ 19.20