Question

Ramlal sold shares of ₹40,000 and purchased shares of ₹70,000 in a day. He paid brokerage at the rate of 0.1% on sale and purchase. 18% GST was charged on brokerage. Find his total expenditure on brokerage and tax. [3 marks]

Answer 1

Selling price of the shares = ₹40,000
Brokerage = 0.1%
Brokreage paid on selling the shares = 0.1% of ₹40,000
= ₹40

GST paid on brokerage = 18% of ₹40
=$\frac{18}{100}$ $\times$ 40 = ₹7.2

Expenditure on brokerage and tax paid on selling the shares = ₹40 + ₹7.2 = ₹47.2
[1 Mark]

Purchase price of the shares = ₹70,000
Brokerage = 0.1%
Brokreage paid on purchasing the shares = 0.1% of ₹70,000
= ₹70

GST paid on brokerage = 18% of ₹70
=$\frac{18}{100}$ $\times$ 70 = ₹12.6

Expenditure on brokerage and tac paid on purchasing the shares = ₹70 + ₹12.6 = ₹82.6
[1 Mark]

Total expenditure on brokerage and tax paid on selling the share + Expenditure on brokerage and tax paid on purchasing the shares

= ₹47.2 + ₹82.6
= ₹129.8
Thus, the total expenditure on brokerage and tax ₹129.8.
[1 Mark]