The printed price of an article is Rs 60,000. The wholesaler allows a discount of $20 %$ to the shopkeeper. The shopkeeper sells the article to the customer at the printed price. Sales tax (under VAT) is charged at the rate of $6 %$ at every stage. Find :
(i) The cost to the shopkeeper inclusive of tax.
(ii) VAT paid by the shopkeeper to the Government.
(iii) The cost to the customer inclusive of tax
[3 MARKS]

Open in App

Solution

Each subpart: 1 Mark

The printed price of an article = Rs 60,000
Discount given by wholesaler $= 20 %$
Total discount $= \frac{60, 000 \times 20}{100} = R s 12, 000$
So, selling price $= R s 60, 000 - R s 12, 000 = R s 48, 000$
$V A T = R s \frac{48, 000 \times 6}{100} = R s 2, 2880$
VAT paid to wholesaler by shopkeeper = Rs 2,880
(i) Cost to the shopkeeper inclusive of tax = Rs 48,000 + Rs 2,880 = Rs 50,880
(ii) VAT paid to shopkeeper by customer $= R s \frac{60, 000 \times 6}{100} = R s 3, 600$
VAT paid by shopkeeper to the Government = $R s 3, 600 - R s 2, 880 = R s 720$
(iii) Cost to the customer inclusive of tax $= R s 60, 000 + R s 3, 600 = R s 63, 600$

Suggest Corrections

Similar questions

Q. A shopkeeper buys an article at a discount of

30 %

and pays sales-tax at the rate of

8 %

. The shopkeeper, in turn, sells the article to a customer at the printed price and charges sales tax at the same rate. If the printed price of the article is Rs.

2, 500

; find:
(i) the price paid by the shopkeeper
(ii) the price paid by the customer
(ii) the VAT (Value Added Tax) paid by the shopkeeper.

Q. A shopkeeper sells an article at its marked price (Rs.

7, 500

) and charges sales-tax at the rate of

12 %

from the customer. If the shopkeeper pays a VAT of Rs.

180

; calculate the price (inclusive of tax) paid by the shopkeeper.

A shopkeeper sells an article at its marked price of ₹ 7500 and charges sales-tax at the rate of 12% from the customer.

If the shopkeeper pays a VAT of ₹ 180, calculate the price inclusive of tax paid by the shopkeeper.

Q. A shopkeeper buys an article at a discount of

30 %

from the wholesaler (the printed price of the article being Rs. 2,000) and paid sales-tax at the rate of

8 %

. The shopkeeper sells the article to a buyer at the printed price and charges tax at the same rate. Find the VAT (Value Added Tax) paid by the shopkeeper.

A shopkeeper sells an article at its marked price which is Rs. 8000 and charges VAT at the rate of 12% from the customer. If the shopkeeper pays a VAT of Rs. 120, then the price paid by shopkeeper inclusive of the tax will be :

Join BYJU'S Learning Program