Question

Shri. Batliwala sold shares of Rs 30,350 and purchased shares of Rs 69,650 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.

Answer 1

Selling price of the shares = Rs 30,350

Brokerage = 0.1%

Brokerage paid on selling the shares = 0.1% of Rs 30,350 = $\frac{0.1}{100}\times 30350$ = Rs 30.35

GST paid on brokerage = 18% of Rs 30.35 = $\frac{18}{100}\times 30.35$ = Rs 5.463

Expenditure on brokerage and tax paid on selling the shares = Rs 30.35 + Rs 5.463 = Rs 35.813


Purchase price of the shares = Rs 69,650

Brokerage = 0.1%

Brokerage paid on purchasing the shares = 0.1% of Rs 69,650 = $\frac{0.1}{100}\times 69650$ = Rs 69.65

GST paid on brokerage = 18% of Rs 69.65 = $\frac{18}{100}\times 69.65$ = Rs 12.537

Expenditure on brokerage and tax paid on purchasing the shares = Rs 69.65 + Rs 12.537 = Rs 82.187

∴ Total expenditure on brokerage and tax

= Expenditure on brokerage and tax paid on selling the shares + Expenditure on brokerage and tax paid on purchasing the shares

= Rs 35.813 + Rs 82.187

= Rs 118

Thus, the total expenditure on brokerage and tax is Rs 118.