CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon
MyQuestionIcon
Question

The marked price of an article is Rs.10,000. A buys it at 30% discount on the marked price and sells it at 10% discount on the marked price. If the rate of tax under VAT is 5%, find the amount of VAT paid by A.

Open in App
Solution

M.P. of an article = Rs. 10,000
A purchased it at discount of = 30%
C.P. of an article
= M.P. - Discount rate × M.P.100
= Rs.10,000 - 30×10,000100
= Rs.10,000 - Rs.300 = Rs. 7000
Tax rate = 5%
Tax paid by A = C.P. ×Tax rate100
= Rs. 7000 ×5100=Rs.350
Now, A sold the article at 10% discount
\therefore S.P. of an article
= M.P. - Discount rate × M.P.100
= Rs. 10,000 - 10×10,000100
= Rs. 10,000 - Rs. 1000 = Rs. 9000
Tax charged by A = S.P. ×Tax rate100
= Rs. 9000 ×5100 = Rs. 450
\therefore VAT paid by A =Tax charged -Tax paid
= Rs. 450- Rs.350 = Rs.100


flag
Suggest Corrections
thumbs-up
2
BNAT
mid-banner-image
similar_icon
Similar questions
View More