Question

A shopkeeper was involved in tax evasion. To save sales tax he never give
receipts to his customers. He sold an article for Rs.550 including 10% VAT.Find
the amount of VAT not paid by him to the government. Is tax evasion correct?
Why should we pay tax? What measures should we adapt to stop tax evasions?​

Answer 1

Answer:

here is your answer

Step-by-step explanation:

Let the price excluding VAT be ′x′

Now VAT is charged on this price while selling.

x+10 × x/100=550

x×11/10=550

x=550×10/11

x=Rs.500

The amount of VAT not paid by him to the Government = 550−500=50