Question

A company sells an article to a dealer for Rs 40,500 including VAT. the dealer sells it to some other dealer for Rs 42,500 plus tax .The second dealer sells it to a customer at a profit of Rs3000 .if the rate of sales-tax under VAT is 8% ,find the total tax (under VAT ) received by the government.

Answer 1

Hey sup!

Company's SP = 40500Rs.
Vat-8%.
Let SP excluding vat be x Rs.
SP=> 108x/100=40500.
=>x=40500/108 ×100.
=>x=375×100=37500Rs

So Vat of 1st dealer=40500-37500=3000Rs.

First dealer SP= 42500 +tax
Vat=8%.
So vat= 42500 × 8/100.
=>Vat=3400.
So SP= 42500+3400=45900Rs.

Second dealer's SP=45900+3000=48900Rs.
Vat=8%.
Vat= 48900 ×8/100.
Vat=3912Rs.

Total vat= 3000+3400+3912=10312Rs.

Hope it helps.