Question

a shopkeeper sold an article for Rs 600 and paid a VAT of Rs 2.40. What is the price,inclusive of sale tax,the shopkeeper paid if rate of VAT is 6% ?

Answer 1

since,the shopkeeper sells the article for Rs600 and charges sales tax 6%.
Tax charged by shopkeeper 6%of Rs600=Rs 36
Vat=tax charged-tax paid
2.40=36-tax paid
tax paid=33.6
If the shopkeeper buys the article for Rs x
tax on it=6%of Rsx=33.6
x =Rs560
the price paid by shopkeeper=Rs560+Rs33.6=Rs593.6