Question

A television is sold at ₹9,540 exclusive VAT. If the VAT charged is 5%, How much did the customer pay?

Answer 1

The original cost exclusive of VAT = 9540 rupees

VAT = 5%

Cost including VAT = 105/100 * 9540 = 10017 rupees

Therefore, the customer paid 10017 rupees

Answer 2

Cost price of customer = Rs9540

since tax = 5%

tax = 5/100x9540 = Rs 477

then,when the tax is inclusive

the cost price of customer will be

=  9540+477 = Rs 10017

∴the answer is = rs 10017.