Question

if the orignal price of an article is rs 500 and its price including VAT is rs 570,find rate of VAT​

Answer 1

Price including VAT = ₹570

Original price = ₹500

So,

amount of VAT added = Price including VAT - Original price

= ₹570 - ₹500

= ₹70

% of VAT included = amount of VAT/ cost price ×100

= 70/500×100

= 70/5 = 14%

So, the rate of VAT added is 14%

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