Question

Waheeda bought an air cooler for ₹ 3300 including a tax of 10%. Find the price of the air cooler before VAT was added.

Answer 1

The price includes the VAT, i.e., the value-added tax. Thus, a 10% VAT means if the price without VAT is ₹ 100 then the price including VAT is ₹ 110.

Now, when price including VAT is ₹ 110, original price is ₹ 100.

Hence when price including tax is ₹ 3300, the original price

= ₹ `100/110 xx 3300`

= ₹ 3000.