A shopkeeper was involved in tax evasion. To save sales tax he never give receipts to his customers. He sold an article for Rs. $550$ including $10 %$ VAT. Find the amount of VAT not paid by him to the Government.

60

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55

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50

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45

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Solution

The correct option is C $50$
Let the price excluding VAT be $^{'} x^{'}$
Now VAT is charged on this price while selling.
$x + \frac{10 \times x}{100} = 550$
$x \times \frac{11}{10} = 550$
$x = 550 \times \frac{10}{11}$
$x = R s .500$

The amount of VAT not paid by him to the Government = $550 - 500 = 50$

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A shopkeeper was involved in tax evasion. To save sales tax he never give receipts to his customers. He sold an article for Rs. 550 including 10% VAT. Find the amount of VAT not paid by him to the Government.

The correct option is C 50Let the price excluding VAT be ′x′Now VAT is charged on this price while selling.x+10×x100=550x×1110=550x=550×1011x=Rs.500The amount of VAT not paid by him to the Government = 550−500=50

A shopkeeper was involved in tax evasion. To save sales tax he never give receipts to his customers. He sold an article for Rs. $550$ including $10 %$ VAT. Find the amount of VAT not paid by him to the Government.