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Question

Find the amount of sales tax a customer has to pay.

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Solution

Given
MP =42,000
First Discount =10%
Second Discount =5%
Sales Tax =8%
So,
First Discount = 10100×42,000
= 4,200
Standing Amount after first disount =42,0004,200
=37,800
Second Discount =5100×37,800
=1,890
Standing after second discount =37,8001,890
=35,910
Now, Payable tax =8100×35,910
=2,872.80
Hence, Customer has to pay Rs 2,872.80 for the sales tax.

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