Question

Smt. Aruna Thakkar purchased 100 shares of FV 100 when the MV is Rs 1200. She paid brokerage at the rate of 0.3% and 18% GST on brokerage. Find the following –
(1) Net amount paid for 100 shares.
(2) Brokerage paid on sum invested.
(3) GST paid on brokerage.
(4) Total amount paid for 100 shares.

Answer 1

Face value of each share = Rs 100

Market value of each share = Rs 1,200

Number of shares purchased = 100

(1) Net amount paid for 100 shares = Market value of each share × Number of shares purchased = Rs 1,200 × 100 = Rs 1,20,000

(2) Rate of brokerage = 0.3%

∴ Brokerage paid on sum invested = 0.3% of Rs 1,20,000 = $\frac{0.3}{100}\times 120000$ = Rs 360

(3) GST paid on brokerage = 18% of Rs 360 = $\frac{18}{100}\times 360$ = Rs 64.80

(4) Total amount paid for 100 shares

= Net amount paid for 100 shares (or Sum invested) + Brokerage paid on sum invested + GST paid on brokerage

= Rs 1,20,000 + Rs 360 + Rs 64.80

= Rs 1,20,424.80