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.

₹ 6000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

₹ 6720

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

₹ 6500

No worries! We‘ve got your back. Try BYJU‘S free classes today!

₹ 7000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B
₹ 6720

Marked price of the article = ₹ 7500

Rate of sales tax = 12%.

Therefore, the tax charged by the shopkeeper = 12% of ₹ 7500

= ₹ 900

Since, VAT = Tax charged – Tax paid

∴ ₹ 180 = ₹ 900 – Tax paid

Or, Tax paid by the shopkeeper = ₹ 900 - ₹ 180 = ₹ 720

Let the price paid by the shopkeeper for the article for ₹ $x$

Tax on it = 12% of $x$ = ₹ 720

Or, $\frac{12}{100}$ × $x$ = ₹ 720

Or, $x$ = ₹ 6000

Therefore, the price inclusive of tax paid by the shopkeeper = ₹ 6000 + ₹ 720 = ₹ 6720

Suggest Corrections

Similar questions

Q. A shopkeeper sells an article at its marked price (Rs.

7, 500

) and charges sales-tax at the rate of

12 %

from the customer. If the shopkeeper pays a VAT of Rs.

180

; calculate the price (inclusive of tax) paid by the shopkeeper.

A shopkeeper sells an article at its marked price which is Rs. 8000 and charges VAT at the rate of 12% from the customer. If the shopkeeper pays a VAT of Rs. 120, then the price paid by shopkeeper inclusive of the tax will be :

Q. A shopkeeper sells an article at its list price (

R s . 3, 000

) and charges sales-tax at the rate of

12 %

. If the VAT paid by the shopkeeper is Rs.

72

, at what price did the shopkeeper buy the article inclusive of sales-tax ?

Q. A shopkeeper buys an article at a discount of

30 %

and pays sales-tax at the rate of

8 %

. The shopkeeper, in turn, sells the article to a customer at the printed price and charges sales tax at the same rate. If the printed price of the article is Rs.

2, 500

; find:
(i) the price paid by the shopkeeper
(ii) the price paid by the customer
(ii) the VAT (Value Added Tax) paid by the shopkeeper.

Q. The printed price of an article is Rs 60,000. The wholesaler allows a discount of

20 %

to the shopkeeper. The shopkeeper sells the article to the customer at the printed price. Sales tax (under VAT) is charged at the rate of

6 %

at every stage. Find :
(i) The cost to the shopkeeper inclusive of tax.
(ii) VAT paid by the shopkeeper to the Government.
(iii) The cost to the customer inclusive of tax
[3 MARKS]

Join BYJU'S Learning Program