Question

jane buys an article for $ 10000 and pays 7% tax. He sells the same article for $ 13000 and charges 9% tax. Find the VAT paid by jane​

Answer 1

Answer:

$470

Step-by-step explanation:

Cost price of the article =Rs.10,000

Tax paid by Shyam =7% of Rs.10,000

                              =

100

7

​

×Rs.10,000=Rs.700

Selling price of the article=Rs.13,000

Tax charged by Shyam =9% of Rs.13,000

                              =

100

9

​

×Rs.13,000=Rs.1,170

∴   VAT = Tax recovered on sale − Tax paid on purchase

             =Rs.1,170−Rs.700=Rs.470