Cost price of an item is ₹ 1000. If the sales tax charged is 20% of cost price, then the bill to be paid is
Sales tax charged = 20% of cost price = 20% of 1000 = 20100×1000 = ₹ 200
∴ Total amount to be paid = cost price + Sales tax = ₹ (1000 + 200) = ₹ 1200
Sales tax is always calculated on the cost price of an item and is added to the value of the bill.
A product is updated with 20% Tax after a cost price of Rs. 500. Find the bill to be paid in rupees.
The cost price of a tablet is 20000.What is the total amount to be paid if tax is 5% of the cost price?