how to find VAT ,GST or Sales Tax??? Give formulas .
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The Sale Price SP of the phone, i.e. it's Original Price OP(sale price excluding GST) + GST on it, is $8800:
SP = OP + GST ---(1)
But we don't have the GST, we only have it's percentage. So let's calculate out GST from the percentage/rate:
GST-in-Percentage = (GST / SP) * 100 => 10 = (GST / 8800) * 100 => GST = 880
Now, putting values in (1):
8800 = OP + 880 => OP = 8800 - 880 => OP = 7920
Note: I have seen it again and again, but I can't see anything wrong with the approach. But this is how they did it:
Price of the mobile = 8800 GST rate = 10% Original Price=? Price percent of the mobile = 100% + 10%; By using Unitary method, 110% price = $8800 1% price = (8800 / 110) 100% price = (8800 / 110) * 100 = $8000 So the original price is $8000.
SP = OP + GST ---(1)
But we don't have the GST, we only have it's percentage. So let's calculate out GST from the percentage/rate:
GST-in-Percentage = (GST / SP) * 100 => 10 = (GST / 8800) * 100 => GST = 880
Now, putting values in (1):
8800 = OP + 880 => OP = 8800 - 880 => OP = 7920
Note: I have seen it again and again, but I can't see anything wrong with the approach. But this is how they did it:
Price of the mobile = 8800 GST rate = 10% Original Price=? Price percent of the mobile = 100% + 10%; By using Unitary method, 110% price = $8800 1% price = (8800 / 110) 100% price = (8800 / 110) * 100 = $8000 So the original price is $8000.
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