Question

Nilay purchases an item from the manufacturer for Rs 216 which he sells to Rahul, Rahul sells it to Naman and Naman sells it to Harshil who sells it to the customer. The VAT rate is 10% and the profit is Rs 20 at each stage of the selling chain. Find:

i) amount of VAT deposited to the Government

ii) total price paid by the customer for the item

• A. Rs 29.6, Rs 325.60
• B. Rs 69.6, Rs 395.60
• C. Rs 69.6, Rs 325.60
• D. Rs 29.6, Rs 395.60

Answer 1

The correct option is A

Rs 29.6, Rs 325.60