Question

market value of a share is 50. If 18% GST is paid on 0.3% brokerage, then find purchase price of one share​

Answer 1

Answer:

Market value = Rs 50

Rate of GST = 18%

Rate of Brokerage = 0.3%

Brokerage = Market Value × Rate of Brokerage

= 50 × 0.3%

= 50 × 0.3 / 100

= 5 × 3 / 100

= 15 / 100

Brokerage = 0.15 Rs

GST = Brokerage × Rate of GST

= 0.15 × 18%

= 0.15 × 18 / 100

= 0.15 × 0.18

GST = 2.70 Rs

Purchase Price = Taxable Value + Brokerage + GST

= 50 + 0.15 + 2.70

Purchase Price = Rs 52.85

Purchase Price of one share is Rs 52.85