Question

ULI
LUIUIS
WCIC MIIUI asiatie.
9. A wholesaler buys a machine from the manufacturer for 25000. He marks the price of the
machine 20% above his cost price and sells it to a retailer at 10% discount on the marked
price. If the rate of GST is 18% and assuming that all transactions occur within the same
state, calculate
(i) the marked price of the machine
(ii) retailers cost price inclusive of GST
(ii) the CGST and SGST payable by the wholesaler to the government​

Answer 1

Answer:

Cost price for wholesaler =Rs.25,000

    Marked price =Rs.25,000+10020×Rs.25,000

                          =Rs.30,000

(ii) Discount =10% of 30,000=Rs.3,000

Cost price for retailer = Marked price − Discount

                                   =Rs.30,000−Rs.3,000

                                   =Rs.27,000

Cost price inclusive tax =Rs.27,000+1008×Rs.27,000

                                     =Rs.29,160

(iii) Cost price for wholesaler =Rs.25,000

      Sale price for wholesaler =Rs.27,000

      Profit for wholesaler =Rs.27,000−Rs.25,000=Rs.2,000

      VAT =1008×Rs.2,000

             =Rs.160.