Question

Ashopkeeper sells an article at its list price (Rs. 3000) 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 sale-tax?

• A. $Rs.2,590$
• B. $Rs.2,688$
• C. $Rs.2,451$
• D. $Rs.2,100$

Answer 1

The correct option is B $Rs.2,688$

Let the profit of the retailer=Rs.x

VAT paid by the shopkeeper is Rs.72 at the rate of sales tax 12%

$\therefore$ 12% of x=72

$\Rightarrow \frac{12}{100}x=72$

$\Rightarrow x=\frac{72\times 100}{12}=Rs.600$

$\therefore$ cost price to the retailer$=3000-600=Rs.2400$

Sales tax paid by the retailer=12% of 2400

$\Rightarrow \frac{12}{100}\times 2400=Rs.288$

$\therefore$Price of the article including sales tax paid by the shopkeeper $=2400+288=Rs.2688$