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Standard VIII

Mathematics

Sales Tax and VAT

A shopkeeper ...

Question

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

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₹ 7120

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₹ 6520

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Solution

The correct option is A
₹ 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
= $\frac{12}{100} \times$ 7500
= ₹900
Since, VAT = Tax charged – Tax paid
$\Rightarrow$ ₹180 = ₹900 – Tax paid
$\Rightarrow$ Tax paid by the shopkeeper = ₹ 900 - ₹ 180 = ₹ 720
If the shopkeeper buys the article for ₹ x
Tax on it = 12% of x = ₹720
$\Rightarrow$ $\frac{12}{100} \times$ x = ₹ 720
$\Rightarrow$ x = ₹6000
Therefore, the price inclusive of tax paid by the shopkeeper = ₹6000 + ₹720 = ₹6720

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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.

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.