Question

The marked price of an item is Rs 8000. The manufacturing company of the item sells it to a shopkeeper at a discount of 15%. The shopkeeper sells it to consumer at the marked price. If the rate of sales tax (under VAT) on the item is 6%, find:

i) the amount of VAT paid by the company

ii) the amount of VAT paid by the shopkeeper

iii) the amount which the consumer paid for the item

• A. Rs 408, Rs 72, Rs 8480
• B. Rs 408, Rs 72, Rs 8000
• C. Rs 408, Rs 50, Rs 8000
• D. Rs 520, Rs 50, Rs 8000
• E. Rs 520, Rs 72, Rs 8480
• F. Rs 520, Rs 72, Rs 8000

Answer 1

The correct option is A

Rs 408, Rs 72, Rs 8480