Question

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. Rs. $6,720$
• B. Rs. $6,950$
• C. Rs. $7,120$
• D. Rs. $7,460$

Answer 1

The correct option is A Rs. $6,720$

Since, the shopkeeper sells the article for Rs. $7,500$ and charges sales-tax at the rate of $12\%$.
$\therefore$ Tax charged by the shopkeeper $=12\%ofRs.7,500$
$=\frac{12}{100}\times$ $Rs.7,500=Rs.900$
$\because$ VAT $=$ Tax charged $-$ Tax paid
$\Rightarrow$ $Rs.180=Rs.900-$Tax paid
$\Rightarrow$ Tax paid by the shopkeeper $=Rs.900-Rs.180=Rs.720$
If the shopkeeper buys the article for Rs. $x$
Tax on it $=12\%ofRs.$ $x$ $=Rs.720$

$\Rightarrow \frac{12}{100}x=720$

$\Rightarrow x=\frac{720\times 100}{12}$

$\Rightarrow x=Rs.6,000$
$\therefore$ The price (inclusive of tax) paid by the shopkeeper$=Rs.6,000+Rs.720=Rs.6,720$