Question

A manufacturer produces an article for Rs. 5,000. He sells it to a dealer at a profit of 10%. The dealer sells it to a consumer at a profit of 20%. If the rate of tax is 20%, find the tax received by the Government under GST​

Answer 1

Answer:

manufacturer marks an article at Rs. 5,000. He sells this article to a wholesaler at a discount of 25% on the marked price and the wholesaler sells it to a retailer at a discount of 15% on its marked price. If he retailer sells the article without any discount and at each stage the sales-tax is 8%, calculate the amount of VAT paid by:

(i) The wholesaler (ii) The retailer

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ANSWER

Mark price =Rs.5000

Manufacture sell the article to the wholesaler at a discount of =25%

Price of the article after discount=5000−

100

25

×5000

⇒5000−1250=Rs.3750

Rate of sales tax=8%

∴Tax paid by the wholesaler=8% of 3750

⇒

100

8

×3750=Rs.300

Wholesaler sell the article to retailer at a discount of 15% on M.P

price of the article after discount=5000−

100

15

×5000

⇒5000−750=Rs.4250

Rate of sales tax =8%

∴Tax paid by the retailer=8% of Rs. 4250

⇒

100

8

×4250=Rs.340

(i)VAT paid by the wholesaler

VAT=tax paid by the retailer-tax paid by the wholesaler

VAT=340−300=Rs.40

(ii)VAT paid by the Retailer

Retailer sell the article at marked price at rate of sales tax=8%

∴Tax earned by the retailer=8% of 5000

⇒

100

8

×5000=Rs.400

VAT=Tax earned by the retailer-Tax paid by the retailer

VAT=400−340=Rs.60

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Answer 2

Answer:

ok

Step-by-step explanation:

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