Question

The value of a car including VAT is rs.382500. If the basic price of the car be rs.340000, find the rate of VAT on cars.

Answer 1

the answer is 12.5%
like vat for 340000 is 42500
so vat for 100 is (42500/340000)x100= 12.5%

Answer 2

Answer:

The rate of VAT on cars is 12.5%.

Step-by-step explanation:

Given : The value of a car including VAT is Rs.382500. If the basic price of the car be Rs.340000.

To find : The rate of VAT on cars ?

Solution :

The selling price is Rs.382500.

The original price is Rs.340000.

The VAT amount is given by,

VAT amount = Selling price - Cost price

VAT amount = 382500 - 340000

VAT amount = Rs.42500

VAT percentage is given by,

$VAT\%=\frac{\text{VAT amount}}{\text{Original price}}\times 100$

$VAT\%=\frac{42500}{340000}\times 100$

$VAT\%=\frac{425}{34}$

$VAT\%=12.5\%$

Therefore, the rate of VAT on cars is 12.5%.