Question

Manoj buys a lather coat costing Rs 900 at Rs 990 after paying the VAT. Calculate the rate of VAT charge on the coat.

Answer 1

$$\begin{gathered} \mathrm{Let}\mathrm{the}\mathrm{rate}\mathrm{of}\mathrm{VAT}\mathrm{be}x\%. \\ \mathrm{Then}, \\ \mathrm{VAT}=\mathrm{Rs}.\left(\frac{x}{100}\times 900\right) \\ =\mathrm{Rs}.9x \\ So, \\ 900+9x=990 \\ 9x=90 \\ x=10 \\ \mathrm{Thus},Manojwascharged10\%\mathrm{VAT}ontheleatherjacket. \end{gathered}$$