Question

Suresh purchase a watch for rs. 810 including the VAT. If the list price of the watch is rs. 750. find the rate of VAT.

Answer 1

Rs 60 is value added tax

Answer 2

Let VAT be x.

Vat = x/100×750

=15x/2

Amount paid (inclusive Vat)= 810

750 + 15x/2= 810

15x/2= 810-750

x = 60×2/15

x = 8

Hence,the rate of Vat is 8%