Question

Sharuti bought a set of cosmetic items for Rs. 345 including $15\%$ value added tax and a purse for Rs. 110 including $10\%$ VAT. What percent is the VAT charged on the whole transactions?

Answer 1

Cost price of set = Rs. 345
VAT $=15\%$
$\therefore$ Sale price $=Rs.\frac{345\times 100}{100+15}$
$=\frac{345\times 100}{115}=Rs.300$
$\therefore$ Amount of VAT = Rs. 345 - Rs. 300 = Rs. 45
Cost price of purse = Rs. 110
VAT $=10\%$
$\therefore$ Sale price $=Rs.\frac{110\times 100}{100+10}$
$=Rs.\frac{110\times 100}{110}=Rs.100$
$\therefore$ Amount of VAT = Rs. 110 - 100 = Rs. 10
Total VAT = Rs. 45 + 10 = Rs. 55
Total sale price = Rs. 300 + 100 = Rs. 400
$\therefore$ Rate of VAT on the whole $=Rs.\frac{55\times 100}{400}$
$=13.75\%$