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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.

A

₹ 6720

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B

₹ 6790

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C

₹ 7120

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D

₹ 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 = 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

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