Shyam buys an article for Rs. $10, 000$ and pays $7 %$ tax. He sells the same article for Rs. $13, 000$ and charges $9 %$ tax. Find the VAT paid by Shyam.

Open in App

Solution

Cost price of the article $= R s . 10, 000$
Tax paid by Shyam $= 7 % o f R s . 10, 000$
$= \frac{7}{100} \times$ $R s . 10, 000 = R s . 700$
Selling price of the article $= R s . 13, 000$
Tax charged by Shyam $= 9 % o f R s . 13, 000$
$= \frac{9}{100} \times$ $R s . 13, 000 = R s . 1, 170$
$∴$ VAT $=$ Tax recovered on sale $-$ Tax paid on purchase
$= R s . 1, 170 - R s . 700 = R s . 470$

Suggest Corrections

Similar questions

A man buys an article for Rs. 12000 and pays 8% tax. He sells the same article for Rs. 14000 and charges 10% tax. The VAT paid by the man is

Kylie buys an article for ₹ 10000 and pays 7% tax. He sells the same article for ₹ 13000 and charges 9% tax. Find the VAT paid by Kylie.

Leela buys an article for ₹ 12000 and pays 7% tax. She sells the same article for ₹ 15000 and charges 9% tax. Find the VAT paid by Leela

A shopkeeper buys an article for Rs.8,000 and sells it for Rs. 10,000. If the rate of tax under VAT is 10%, find : (i) tax paid by the shopkeeper (ii) tax charged by the shopkeeper (iii) VAT paid by the shopkeeper

Q. A retailer buys an article for Rs. 800 and pays the sales-tax at the rate of 8

%

. The retailer sells the same article to a customer for Rs. 1,000 and charges sales-tax at the same rate. Find:
(i) the price paid by a customer to buy this article
(ii) the amount of VAT paid by the retailer

Join BYJU'S Learning Program

Shyam buys an article for Rs. 10,000 and pays 7% tax. He sells the same article for Rs. 13,000 and charges 9% tax. Find the VAT paid by Shyam.

Cost price of the article =Rs.10,000Tax paid by Shyam =7% of Rs.10,000 =7100×Rs.10,000=Rs.700Selling price of the article=Rs.13,000Tax charged by Shyam =9% of Rs.13,000 =9100×Rs.13,000=Rs.1,170∴ VAT = Tax recovered on sale − Tax paid on purchase =Rs.1,170−Rs.700=Rs.470

Shyam buys an article for Rs. $10, 000$ and pays $7 %$ tax. He sells the same article for Rs. $13, 000$ and charges $9 %$ tax. Find the VAT paid by Shyam.