Question

2. A wholesaler A sells a machine to a retailer B for * 5000 and the
consumer at a profit of 1000. If the GST rate is 12%, calculate the tax liability of the retailer B​

Answer 1

Answer:

Given :

The wholesaler A sells machine to retailer B for rupees 5000

The retailer B sells it to a consumer at a profit of rupees 1000

The GST percentage rate = 12%

To Find :

The tax liability of the retailer B

Solution :

As , wholesaler A sells machine to retailer B for Rs 5000

So, Cost price for retailer B = Rs 5000

Again

The retailer B sells it to a consumer at a profit of Rs 1000

So, Cost price for customer = actual amount + profit amount

i.e Cost price for customer = Rs 5000 + Rs 1000

= Rs 6000

Now,

The GST tax percentage = 12%

So, The GST amount = 12% of cost price for customer

= 12 % × Rs 6000

= \dfrac{12}{100}

100

12

× Rs 6000

= Rs 720

So, The GST amount = Rs 720

Hence, The Tax liability amount of the retailer is Rs 720

Answer 2

Answer:

A sells to B at rupees 5000

B sells to the consumer at rupees 6000

profit 1000 rupees

tax liability= profit×GST percentage

GST =12%

12/100×1000=120 rupees