Question

sale.
All paid a 15% sales tax on a suitcase. He paid Rs 90 in
sales tax. How much did he pay altogether for the suitcase?​

Answer 1

Answer:

In order to increase revenue, state governments levy sales tax on the sale of goods within their states. For the inter-state movement of goods, the Union (Central) Government also levies sales tax, known as Central Sales Tax. It is the tax imposed on purchase of items.

The rates of Sales Tax depend upon the nature of goods purchased and are different for different goods. Even different states have different rates of Sales Tax on the same goods. Some items of necessity or of daily use for common persons are completely exempted from Sales Tax.

Terms

Important terms necessary to understand this chapter fully have been explained in our article titled Profit and Loss. One needs to go through Profit and Loss article to understand the terminologies.

Sale Price: It is the price after subtracting discount from the list price. i.e. Sale Price=List price-Discount.

Sales Tax is calculated on the Sale Price.

Sales Tax=

\dfrac{Rate \: of \: Sales \: Tax \times Sale \: Price}{100}

Rate of Sales Tax=

\dfrac{Sales Tax}{Sale Price} \times 100 \%

The amount of money of money paid by a customer for an article= The Sale Price of the article + Sales Tax on it.

If P be the printed price of a commodity, the rate of sales tax be r% and S be the selling price then

S=P(1+\dfrac{r}{100}) and Sales Tax=

S-P= \dfrac{P \times r}{100}