Question

Manufacturer listed the price of is good at rupees 1600 per article care discount of 25% to wholesaler who internal order discount of 20% on the listed price to the retailer the retailer sells an article to a consumer at a discount of 5% on the listed price if all stills are interest rate and the rate of GST 5% find

Answer 1

Answer:

(1) For the manufacturer, the selling price of article

=160−25% of 160

=160−25/100 ×160

=Rs. 120

Input Tax for the wholesaler =10% of 120=10/100×120=Rs. 12

For the wholesaler, the selling price of article

=160−20% of 160

=160−20/100×160

=Rs. 128

Output tax for the wholesaler

=10% of 128

=10/100×128

=Rs. 12.8

VAT paid by the wholesaler

=Output Tax−Input tax

=12.8−12

=Rs. 0.80

(2) For the retailer, the selling price of the article

=160−5% of 160

=160−5/100×160

=Rs. 152

Input Tax paid by the retailer = Output tax for the wholesaler = Rs. 12.8

Output Tax paid by the retailer

=10% of 152

=10/100×152

=Rs. 15.2

VAT paid by the retailer =15.2−12.8=Rs 2.40

(3) VAT received by the government

=10% of 152

=10/100×152

=Rs 15.20

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