A shopkeeper sells an article at its marked price of ₹ 7500 and charges sales-tax at the rate of 12% from the customer.
If the shopkeeper pays a VAT of ₹ 180, calculate the price inclusive of tax paid by the shopkeeper.
₹ 6720
Since, the shopkeeper sells the article for ₹7500 and charges sales-tax at the rate of 12%.
∴ The tax charged by the shopkeeper = 12% of ₹7500
= 12100× 7500
= ₹900
Since, VAT = Tax charged – Tax paid
⇒ ₹180 = ₹900 – Tax paid
⇒ Tax paid by the shopkeeper = ₹ 900 - ₹ 180 = ₹ 720
If the shopkeeper buys the article for ₹ x
Tax on it = 12% of x = ₹720
⇒ 12100× x = ₹ 720
⇒ x = ₹6000
Therefore, the price inclusive of tax paid by the shopkeeper = ₹6000 + ₹720 = ₹6720