Question

Manoj buys a leather coat costing Rs. 900 at Rs. 990 after paying the VAT. Calculate the VAT charged on the cost.

Answer 1

Cost price of coat = Rs. 900
And sale price including VAT = Rs. 990
$\therefore$ Amount of VAT
=Rs. 990 - Rs. 900 = Rs. 90
$\therefore$ Rate of VAT $=\frac{90\times 100}{900}=10\%$