The dealer buys an article at a discount of $30 %$ from the wholesaler, the marked price being Rs. $6, 000$ . The dealer sells it to a shopkeeper at a discount of $10 %$ on the marked price. If the rate of VAT is $6 %$ , find the VAT paid by the dealer

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Solution

Given: Market Price $= R s . 6, 000$ , Rate of discount $= 30 %$
$∴$ The price of the article which the dealer paid to the wholesaler
$= R s . 6, 000 - 10 %$ of $6, 000$
$= R s . 6, 000 - 30 %$ of $6, 000$
$= R s . 6, 000 - \frac{6, 000 \times 30}{100}$
$= R s (6, 000 - 1, 800)$
$= R s . 4, 200$
Sales tax paid by the dealer to the wholesaler
$= 6 %$ of $4, 200$
$= \frac{6 \times 4, 200}{100} = R s . 252$
VAT paid by the dealer $=$ Tax charge $-$ Tax paid
$= R s . 324 - R s . 252$
$= R s . 72$ .

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The dealer buys an article at a discount of 30% from the wholesaler, the marked price being Rs. 6,000. The dealer sells it to a shopkeeper at a discount of 10% on the marked price. If the rate of VAT is 6%, find the VAT paid by the dealer

The dealer buys an article at a discount of $30 %$ from the wholesaler, the marked price being Rs. $6, 000$ . The dealer sells it to a shopkeeper at a discount of $10 %$ on the marked price. If the rate of VAT is $6 %$ , find the VAT paid by the dealer