Question

Shivam purchased a bicycle for RS. 1664 including VAT. This list price of bicycle is RS.1660 . Find the rate if VAT

Answer 1

Find the VAT:

List price = Rs 1660

Amount paid = Rs 1664

VAT = amount paid - list price

VAT = 1664 - 1660 = Rs 4

Find the VAT rate:

Rate = VAT/list price x 100

Rate = 4/1600 x 100 = 0.25%

Answer: The VAT is 0.25%