Question

Waheeda bought an air cooler for Rs 3300 including a tax of 10%. Find the price of the air cooler before VAT was added.

Answer 1

The price includes the VAT, i.e., the value added tax.

Thus, a 10% VAT means if the price without VAT is Rs 100 then price including VAT is Rs 110.

Now, when price including VAT is Rs 110, original price is Rs 100.

Hence, when price including tax is Rs 3300, the original price = Rs.3000