Question

Sudha bought a TV for Rs. 13500. If 8% VAT is included in the price, find the original price of TV.

Answer 1

The price includes the VAT, i.e., the value added tax.

Thus, an $8\%$ VAT means if the price without VAT is Rs.$100$, then price including VAT is Rs.$108$.

Now, when price including VAT is Rs. $108$, the original price is Rs.$100$
Hence, when price including tax is Rs.$13500$,

the original price $=\frac{100}{108}\times 13500=$ Rs.$12500$