a shop sales a pack of mix Dry fruits at 616 inclusive of GST of 12 Percent find the orginal price of dry fruits
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A shop keeper sells an article at its list price Rs 3,000 and charges sale tax at the rate of 12%. If the VAT paid by the shopkeeper is Rs 72 , at what price did the shopkeeper buys the article inclusive of sales tax?
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Correct option is A)
⇒ Output tax = Tax realized by the retailer from the customer =12% of 3000.
⇒ Output Tax = Rs. 360.
⇒ Let the price of the article charged by the wholesaler be P before tax.
⇒ Then the input tax =12% of P =
100
12P
=
25
3P
⇒ VAT=Outputtax−Inputtax
⇒ 72=360−
25
3P
⇒
25
3P
=360−72
⇒
25
3P
=288
⇒ P=288×
3
25
∴ P=Rs.2400
⇒ Then, Inputtax=
25
3×2400
=Rs.288
⇒ The required price = P + Input tax = Rs. 2400+288 = Rs.2,688.