Question

V.A.T.

A shopkeeper sells an article at the listed price of ₹1500 and the rate of VAT is 12% at each stage of sale . If the shopkeeper pays a VAT of ₹36 to the Government,what was the amount inclusive of tax at which the shopkeeper purchased the article from the wholesaler.

Please give a brief and good answer ...

Answer 1

let the value added by shopkeeper in his c.p be x
so x*12/100=36
x=300 rs
c.p. =s.p -profit (i.e. value added)
=1500-300
=1200
tax paid = 1200*12/100
=144
total c.p.=1200+144=1344