Question

a shopkeeper buys an article whose list price is Rs.800 at some rate of discount from a wholesaler. He sells the article to a customer at the list price and charges sales tax at the prescribed rate of 7.5%. if the shopkeeper has to pay a VAT of Rs.6,find the rate of discount at which he bought the article from the wholesaler.

Answer 1

Let the profit be x(since VAT is the tax on profit)
. Then 7.5% of x =rs. 6. Its coming rs. 80 and then C. P. =S. P-profit=rs.720.

Answer 2

Given list price of an article = Rs 8000

Let the Discount Rate = x %

Discount given = (x/100)8000 = Rs. 80x

because the shopkeeper is getting a discount of Rs. 80x, and selling the article at the Market Price

which means he is making a profit of Rs. 80x which is equal to the discount he got.

so he has to pay the tax only on the profit he is making.

∴ Gst = (18/100) * 80x

= 144x/10

144x/10 = Rs.72

x = 720/144

∴ x = 5%

Answer:- Discount % = 5%