Question

The cost of an article is Rs 6000 to a distributor. If he sells it to a trader for Rs 7500. The trader sells it to a customer for Rs 8000. If the VAT rate is 12.5%; find the VAT paid by the:

i) distributor ii) trader

• A. Rs 187.50, Rs 50.50
• B. Rs 287.50, Rs 62.50
• C. Rs 287.50, Rs 50.50
• D. Rs 187.50, Rs 62.50

Answer 1

The correct option is D

Rs 187.50, Rs 62.50