Question

$\text{The value of a car including VAT is Rs.382500.If the basic price of the car be Rs.340000,find the rate of VAT on cars.}$

Answer 1

$\text{Sale price of car including VAT=Rs.382500}\text{Basic price of the car = Rs.340000}\therefore \text{Amount of VAT=Rs.382500-340000}=Rs.42500\text{Rate of VAt}=\frac{\text{Total VAT}\times 100}{\text{Basic price}}=Rs.\frac{42500\times 100}{340000}=12.5\%$